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 | $119,000 |
| Warehouse salaries | 196,000 | U.S. savings bonds | 14,344 |
| Office salaries | 131,000 | Group insurance | 11,736 |
| | $652,000 | | |
| | | | |
| 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 employers 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 exact wording of account titles): | | On page 11 of the journal: December 30, to record the payroll. | | | 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 $652,000 in salaries is subject to unemployment compensation taxes. 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 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, $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 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 employers payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $652,000 in salaries is subject to unemployment compensation taxes. 
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PAGE 11 JOURNAL Score: 158/171 ACCOUNTING EQUATION DATE DESCRIPTION POST REF. DEBIT 325,000.00 196,000.00 131,000.00 CREDIT ASSETS LIABILITIES EQUITY Dec.30 Sales Salaries Expense Warehouse Salaries Expense Office Salaries Expense Employees Income Tax Payable Social Security Tax Payable Medicare Tax Payable Bond Deductions Payable Group Insurance Payable Salaries Payable 119,000.00 39,120.00 9,780.00 14,344.00 11,736.00 458,020.00 2,376.00 352.00 2,640.00 660.00 352.00 Dec. 30State Unemployment Tax Payable 10 Federal Unemployment Tax Payable Social Security Tax Payable Medicare Tax Payable Payroll Tax Expense 12 13 14 PAGE 11 JOURNAL Score: 158/171 ACCOUNTING EQUATION DATE DESCRIPTION POST REF. DEBIT 325,000.00 196,000.00 131,000.00 CREDIT ASSETS LIABILITIES EQUITY Dec.30 Sales Salaries Expense Warehouse Salaries Expense Office Salaries Expense Employees Income Tax Payable Social Security Tax Payable Medicare Tax Payable Bond Deductions Payable Group Insurance Payable Salaries Payable 119,000.00 39,120.00 9,780.00 14,344.00 11,736.00 458,020.00 2,376.00 352.00 2,640.00 660.00 352.00 Dec. 30State Unemployment Tax Payable 10 Federal Unemployment Tax Payable Social Security Tax Payable Medicare Tax Payable Payroll Tax Expense 12 13 14
