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

Salaries:

Sales salaries $$325,000$

Warehouse salaries $196,000$

Office salaries $131,000$

$$652,000$

Deductions:

Federal income tax withheld $$119,000$

Social security tax withheld $39,120$

Medicare tax withheld $9,780$

Retirement savings $14,344$

Group insurance $11,736$

$$193,980$

Tax rates assumed:

Social security $6\%$

Medicare $1\mathrm{.}5\%$

State unemployment $($employer only$)5\mathrm{.}4\%$

Federal unemployment $($employer only$)0\mathrm{.}6\%$

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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered$)$:

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, $$44,000$ 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered$)$:

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 $5.$ Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes. CHART OF ACCOUNTS

Pharrell Co$.$

General Ledger

ASSETS

$110$ Cash

$111$ Accounts Receivable

$112$ Interest Receivable

$113$ Notes Receivable

$115$ Merchandise Inventory

$116$ Supplies

$118$ Prepaid Insurance

$120$ Land

$123$ Building

$124$ Accumulated Depreciation$-$Building

$125$ Office Equipment

$126$ Accumulated Depreciation$-$Office Equipment

LIABILITIES

$210$ Accounts Payable

$213$ Interest Payable

$214$ Notes Payable

$215$ Salaries Payable

$216$ Social Security Tax Payable

$217$ Medicare Tax Payable

$218$ Employees Federal Income Tax Payable

$220$ Group Insurance Payable

$221$ Bond Deductions Payable

$222$ Retirement Savings Payable

$224$ Federal Unemployment Tax Payable

$225$ State Unemployment Tax Payable

$226$ Vacation Pay Payable

$227$ Unfunded Pension Liability

EQUITY

$310$ Owner, Capital

$311$ Owner, Drawing

REVENUE

$410$ Sales

$610$ Interest Revenue

EXPENSES

$510$ Cost of Merchandise Sold

$520$ Sales Salaries Expense

$521$ Warehouse Salaries Expense

$522$ Office Salaries Expense

$524$ Depreciation Expense$-$Building

$525$ Delivery Expense

$526$ Repairs Expense

$529$ Selling Expenses

$531$ Rent Expense

$532$ Depreciation Expense$-$Office Equipment

$533$ Insurance Expense

$534$ Supplies Expense

$535$ Payroll Tax Expense

$536$ Vacation Pay Expense

$537$ Pension Expense

$538$ Cash Short and Over

$540$ Miscellaneous Expense

$710$ Interest Expense Scroll down to access additional pages of the journal.

$1.$ 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered$)$:

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, $$44,000$ is subject to unemployment compensation taxes.

PAGE $11$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

$2.$ 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered$)$:

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

PAGE $11$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

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

PAGE $12$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY