Problem $4$ Entries for payroll and payroll taxes $$ Ch $10$

The following information about payroll for the week ended December $31$ was obtained from the records of Pelican Co$.$:

Salaries: Deductions:

Sales salaries $$410,000$ Federal income tax withheld $$121,200$

Warehouse salaries $240,000$ Social security tax withheld $49,200$

Office salaries $170,000$ Medicare tax withheld $12,300$

$$820,000$ Retirement savings $18,928$

Group insurance $14,291$

$$215,919$

Tax rates assumed:

Social security, $6\%$

Medicare, $1\mathrm{.}5\%$

State unemployment $($employer only$),5\mathrm{.}4\%$

Federal unemployment $($employer only$),0\mathrm{.}6\%$

Instructions:

$1.$ Assuming that the payroll for the last week of thee year is to be paid on December $31,$ journalize the following entries:

a$.$ December $31,$ to record the payroll.

b$.$ December $31,$ to record the employer$$s payroll taxes on the payroll to be paid on December $31.$ Of the total payroll for the last week of the year, $$30,000$ is subject to unemployment compensation taxes.

$2.$ Assuming that the payroll for the last week of the year is to be paid on January $5$ of the following fiscal year, journalize the following entries:

a$.$ December $31,$ to record the payroll.

b$.$ January $5,$ to record the employer$$s payroll taxes on the payroll to be paid on January $5.$ Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.