Question
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: Sales salaries $211,000
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.:
Salaries: | Deductions: | |||||
Sales salaries | $211,000 | Federal income tax withheld | $76,560 | |||
Warehouse salaries | 116,000 | Social security tax withheld | 26,100 | |||
Office salaries | 108,000 | Medicare tax withheld | 6,525 | |||
$435,000 | Retirement savings | 9,570 | ||||
Group insurance | 7,830 | |||||
$126,585 |
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 PayableSales Salaries Expense | fill in the blank 2 | fill in the blank 3 |
CashMedicare Tax PayableSocial Security Tax PayableWarehouse Salaries ExpenseWarehouse Salaries PayableWarehouse Salaries Expense | fill in the blank 5 | fill in the blank 6 | |
CashRetirement Savings Deductions PayableEmployees Income Tax ExpenseOffice Salaries ExpenseOffice Salaries PayableOffice Salaries Expense | fill in the blank 8 | fill in the blank 9 | |
CashEmployees Income Tax ExpenseEmployees Federal Income Tax PayableOffice Salaries ExpenseWarehouse Salaries ExpenseEmployees Income Tax Expense | fill in the blank 11 | fill in the blank 12 | |
CashSales Salaries ExpenseSocial Security Tax ExpenseSocial Security Tax PayableWarehouse Salaries ExpenseSocial Security Tax Payable | fill in the blank 14 | fill in the blank 15 | |
CashMedicare Tax ExpenseMedicare Tax PayableOffice Salaries ExpenseSales Salaries ExpenseMedicare Tax Payable | fill in the blank 17 | fill in the blank 18 | |
Bond Deductions ExpenseRetirement Savings Deductions PayableCashOffice Salaries ExpenseWarehouse Salaries ExpenseRetirement Savings Deductions Payable | fill in the blank 20 | fill in the blank 21 | |
Accounts PayableGroup Insurance ExpenseGroup Insurance PayableOffice Salaries ExpenseSales Salaries ExpenseGroup Insurance Payable | fill in the blank 23 | fill in the blank 24 | |
Accounts ReceivableOffice Salaries ExpenseSalaries PayableSales Salaries ExpenseWarehouse Salaries ExpenseSalaries Payable | 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 PayableSalaries Expense | 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 ExpenseSalaries Payable | 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 $435,000 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 PayablePayroll Tax Expense | fill in the blank 71 | fill in the blank 72 |
Accounts PayableFederal Unemployment Tax ExpensePayroll Tax ExpensePayroll Tax PayableSocial Security Tax PayableSocial Security Tax Payable | fill in the blank 74 | fill in the blank 75 | |
CashMedicare Tax ExpenseMedicare Tax PayablePayroll Tax ExpensePayroll Tax PayableMedicare Tax Payable | fill in the blank 77 | fill in the blank 78 | |
CashOffice Salaries ExpenseSalaries PayableState Unemployment Tax ExpenseState Unemployment Tax PayableState Unemployment Tax Payable | fill in the blank 80 | fill in the blank 81 | |
CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableSalaries PayableWarehouse Salaries ExpenseFederal Unemployment Tax Payable | fill in the blank 83 | fill in the blank 84 |
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