Sage Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed.

Employee

Earnings to July 31

Weekly Pay

Vacation Pay to Be Received in August

Mark Hamill $5,010 $200 -

Karen Robbins 4,310 150 $300

Brent Kirk 3,510 110 220

Alec Guinness 8,210 250 -

Ken Sprouse 8,810 330 660

Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $118,500 per employee. In addition, a 1.45% rate is charged both employer and employee for an employees wages in excess of $118,500. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the companys liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities.(Round answers to 2 decimal places, e.g. 15.25. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Salaries and Wages Expense Withholding Taxes Payable Debit Credit 1040 FICA Taxes Payable Union Dues Payable (To record Payroll 1.) Payroll Tax Expense SUTA Taxes Payable FICA Taxes Payable

Question

Sage Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed.

Employee	Earnings to July 31	Weekly Pay	Vacation Pay to Be Received in August
Mark Hamill	$5,010	$200	-
Karen Robbins	4,310	150	$300
Brent Kirk	3,510	110	220
Alec Guinness	8,210	250	-
Ken Sprouse	8,810	330	660

Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $118,500 per employee. In addition, a 1.45% rate is charged both employer and employee for an employees wages in excess of $118,500. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the companys liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities.(Round answers to 2 decimal places, e.g. 15.25. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Salaries and Wages Expense Withholding Taxes Payable Debit Credit 1040 FICA Taxes Payable Union Dues Payable (To record Payroll 1.) Payroll Tax Expense SUTA Taxes Payable FICA Taxes Payable