The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:

Salaries:Deductions: Sales salaries$325,000 Income tax withheld $116,200 Warehouse salaries 192,000U.S. savings bonds 14,388 Office salaries 137,000 Group insurance 11,772 $654,000

Tax rates assumed:Social security 6% State unemployment (employer only) 5.4%Medicare 1.5%Federal unemployment (employer only) 0.8%

Required: 1.Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a.December 30, to record the payroll.

b.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, $45,000 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 (refer to the Chart of Accounts for exact wording of account titles):

?a.On page 11 of the journal: December 30, to record the payroll.

b.On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $654,000 in salaries is subject to unemployment compensation taxes.

Instructions Chart of Accounts ASSETS REVENUE Salaries: Deductions: 110 Cash 410 Sales $325,000 Income tax withheld $116,200 111 Accounts Receivable 610 Interest Revenue Sales salaries 112 Interest Receivable Warehouse salaries 192,000 U.S. savings bonds 14,388 113 Notes Receivable EXPENSES Office salaries 137,000 Group insurance 11,77 115 Inventory 510 Cost of Goods Sold $654,000 116 Supplies 520 Sales Salaries Expense 118 Prepaid Insurance 521 Warehouse Salaries Expense 120 Land 522 Office Salaries Expense Tax rates assumed: 123 Building 524 Depreciation Expense-Building Social security 6% State unemployment (employer only) 5.4% 124 Accumulated Depreciation-Building 525 Delivery Expense Medicare 1.5% Federal unemployment (employer only) 0.8% 125 Office Equipment 526 Repairs Expense 126 Accumulated Depreciation-Office Equipment 529 Selling Expenses Required: 531 Rent Expense 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of LIABILITIES 532 Depreciation Expense-Office Equipment Accounts for exact wording of account titles): 210 Accounts Payable 533 Insurance Expense a. December 30, to record the payroll 213 Interest Payable 534 Supplies Expense b. 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 214 Notes Payable 535 Payroll Tax Expense year, $45,000 is subject to unemployment compensation taxes. 215 Salaries Payable 536 Vacation Pay Expense 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 216 Social Security Tax Pavable 537 Pension Expense Journal PAGE 11 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS ACCOUNTING FOUATION LIABILITIES EQUITYJournal 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 (refer to the Chart of Accounts for exact wording of account titles). a. On page 11 of the journal: December 30, to record the payroll. b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $654,000 in salaries is subject to unemployment compensation taxes. PAGE 11 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTING FOUATION ASSETS LIABILITIES EQUITY