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Salaries: Deductions: Sales salaries $217,000 Federal income tax withheld $78,672 Warehouse salaries 119,000 Social security tax withheld 26,820 Office salaries 111,000 Medicare tax withheld 6,705

Salaries: Deductions:
Sales salaries $217,000 Federal income tax withheld $78,672
Warehouse salaries 119,000 Social security tax withheld 26,820
Office salaries 111,000 Medicare tax withheld 6,705
$447,000 Retirement savings 9,834
Group insurance 8,046
$130,077

Tax rates assumed:
Social security, 6%
Medicare, 1.5%
State unemployment (employer only), 5.4%
Federal unemployment (employer only), 0.6%

Required:

If an amount box does not require an entry, leave it blank.

1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.

Date Account Debit Credit
Dec. 30

CashEmployees Income Tax ExpenseMedicare Tax PayableSales Salaries ExpenseSales Salaries Payable

fill in the blank 2 fill in the blank 3

CashMedicare Tax PayableSocial Security Tax PayableWarehouse Salaries ExpenseWarehouse Salaries Payable

fill in the blank 5 fill in the blank 6

CashRetirement Savings Deductions PayableEmployees Income Tax ExpenseOffice Salaries ExpenseOffice Salaries Payable

fill in the blank 8 fill in the blank 9

CashEmployees Income Tax ExpenseEmployees Federal Income Tax PayableOffice Salaries ExpenseWarehouse Salaries Expense

fill in the blank 11 fill in the blank 12

CashSales Salaries ExpenseSocial Security Tax ExpenseSocial Security Tax PayableWarehouse Salaries Expense

fill in the blank 14 fill in the blank 15

CashMedicare Tax ExpenseMedicare Tax PayableOffice Salaries ExpenseSales Salaries Expense

fill in the blank 17 fill in the blank 18

Bond Deductions ExpenseRetirement Savings Deductions PayableCashOffice Salaries ExpenseWarehouse Salaries Expense

fill in the blank 20 fill in the blank 21

Accounts PayableGroup Insurance ExpenseGroup Insurance PayableOffice Salaries ExpenseSales Salaries Expense

fill in the blank 23 fill in the blank 24

Accounts ReceivableOffice Salaries ExpenseSalaries PayableSales Salaries ExpenseWarehouse Salaries Expense

fill in the blank 26 fill in the blank 27

1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, 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, $22,000 is subject to unemployment compensation taxes.

Date Account Debit Credit
Dec. 30

Federal Unemployment Tax PayableMedicare Tax PayablePayroll Tax ExpenseSalaries ExpenseSocial Security Tax Payable

fill in the blank 29 fill in the blank 30

Accounts PayableFederal Unemployment Tax ExpensePayroll Tax ExpensePayroll Tax PayableSocial Security Tax Payable

fill in the blank 32 fill in the blank 33

CashMedicare Tax ExpenseMedicare Tax PayablePayroll Tax ExpensePayroll Tax Payable

fill in the blank 35 fill in the blank 36

CashOffice Salaries ExpenseSalaries PayableState Unemployment Tax ExpenseState Unemployment Tax Payable

fill in the blank 38 fill in the blank 39

CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableSalaries PayableWarehouse Salaries Expense

fill in the blank 41 fill in the blank 42

2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30, to record the payroll.

Date Account Debit Credit
Dec. 30

CashEmployees Income Tax ExpenseMedicare Tax PayableSales Salaries ExpenseSales Salaries Payable

fill in the blank 44 fill in the blank 45

CashMedicare Tax PayableSocial Security Tax PayableWarehouse Salaries ExpenseWarehouse Salaries Payable

fill in the blank 47 fill in the blank 48

CashRetirement Savings Deductions PayableEmployees Income Tax ExpenseOffice Salaries ExpenseOffice Salaries Payable

fill in the blank 50 fill in the blank 51

CashEmployees Income Tax ExpenseEmployees Federal Income Tax PayableOffice Salaries ExpenseWarehouse Salaries Expense

fill in the blank 53 fill in the blank 54

CashSales Salaries ExpenseSocial Security Tax ExpenseSocial Security Tax PayableWarehouse Salaries Expense

fill in the blank 56 fill in the blank 57

CashMedicare Tax ExpenseMedicare Tax PayableOffice Salaries ExpenseSales Salaries Expense

fill in the blank 59 fill in the blank 60

Bond Deductions ExpenseRetirement Savings Deductions PayableCashOffice Salaries ExpenseWarehouse Salaries Expense

fill in the blank 62 fill in the blank 63

Accounts PayableGroup Insurance ExpenseGroup Insurance PayableOffice Salaries ExpenseSales Salaries Expense

fill in the blank 65 fill in the blank 66

Accounts ReceivableOffice Salaries ExpenseSalaries PayableSales Salaries ExpenseWarehouse Salaries Expense

fill in the blank 68 fill in the blank 69

2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $447,000 in salaries is subject to unemployment compensation taxes.

Date Account Debit Credit
Jan. 4

Federal Unemployment Tax PayableMedicare Tax PayablePayroll Tax ExpenseSalaries ExpenseSocial Security Tax Payable

fill in the blank 71 fill in the blank 72

Accounts PayableFederal Unemployment Tax ExpensePayroll Tax ExpensePayroll Tax PayableSocial Security Tax Payable

fill in the blank 74 fill in the blank 75

CashMedicare Tax ExpenseMedicare Tax PayablePayroll Tax ExpensePayroll Tax Payable

fill in the blank 77 fill in the blank 78

CashOffice Salaries ExpenseSalaries PayableState Unemployment Tax ExpenseState Unemployment Tax Payable

fill in the blank 80 fill in the blank 81

CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableSalaries PayableWarehouse Salaries Expense

fill in the blank 83 fill in the blank 84

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