Question
Recording Payroll and Payroll Taxes The following data are taken from Fremont Wholesale Company's May payroll: Administrative salaries $44,200 Sales salaries 61,100 Custodial salaries 9,100
Recording Payroll and Payroll Taxes The following data are taken from Fremont Wholesale Company's May payroll:
Administrative salaries | $44,200 |
Sales salaries | 61,100 |
Custodial salaries | 9,100 |
Total payroll | $114,400 |
Salaries subject to 1.45 percent Medicare tax | $114,400 |
Salaries subject to 6.2 percent Social Security tax | 96,200 |
Salaries subject to federal unemployment taxes | 18,200 |
Salaries subject to state unemployment taxes | 26,000 |
Federal income taxes withheld from all salaries | 23,140 |
Assume that the company is subject to a two percent state unemployment tax (due to a favorable experience rating) and a 0.6 percent federal unemployment tax. Required Record the following in general journal form on May 31: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA matches the amount withheld.) d. Payment of these payroll-related liabilities. (Assume that all are settled at the same time.)
Round your answers to the nearest dollar.
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