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

Salaries:

Sales salaries $350,000

Warehouse salaries $180,000

Office salaries $145,000

$675,000

Deductions:

Income tax withheld $118,800

Social security tax withheld $40,500

Medicare tax withheld $10,125

U.S. savings bonds $14,850

Group insurance $12,150

$196,425

Tax rates assumed:

Social security 6%

Medicare 1.5%

State unemployment (employer only) 5.4%

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, 2015, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):

A. December 30, 2015, to record the payroll. Include the year when enter the date in the journal

B. December 30, 2015, 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, $35,000 is subject to unemployment compensation taxes. Include the year when enter the date in the journal.

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.December 30, 2015, to record the payroll. Include the year when enter the date in the journal.

B. January 5, 2016, to record the employer's payroll taxes on the payroll to be paid on January 5, 2016. Because it is a new fiscal year, all $675,000 in salaries is subject to unemployment compensation taxes. Include the year when enter the date in the journal.

CHART OF ACCOUNTS

Qualitech Co.

General Ledger

ASSETS

110Cash

111Accounts Receivable

112Interest Receivable

113Notes Receivable

115Merchandise Inventory

116Supplies

118Prepaid Insurance

120Land

123Building

124Accumulated Depreciation-Building

125Office Equipment

126Accumulated Depreciation-Office Equipment

LIABILITIES

210Accounts Payable

213Interest Payable

214Notes Payable

215Salaries Payable

216Social Security Tax Payable

217Medicare Tax Payable

218Employees Income Tax Payable

220Group Insurance Payable

221Bond Deductions Payable

222Union Dues Payable

223Retirement Savings Deductions Payable

224Federal Unemployment Tax Payable

225State Unemployment Tax Payable

226Vacation Pay Payable

227Unfunded Pension Liability

EQUITY

310Owner, Capital

311Owner, Drawing

312Income Summary

REVENUE

410Sales

610Interest Revenue

EXPENSES

510Cost of Merchandise Sold

520Sales Salaries Expense

521Warehouse Salaries Expense

522Office Salaries Expense

524Depreciation Expense-Building

525Delivery Expense

526Repairs Expense

529Selling Expenses

531Rent Expense

532Depreciation Expense-Office Equipment

533Insurance Expense

534Supplies Expense

535Payroll Tax Expense

536Vacation Pay Expense

537Pension Expense

538Cash Short and Over

540Miscellaneous Expense

710Interest Expense