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

Required:

Salaries:

Sales salaries

$402,000

Warehouse salaries

210,000

Office salaries

165,000

$777,000

Deductions:

Income tax withheld

$135,975

Social security tax withheld

46,620

Medicare tax withheld

11,655

Retirement savings

17,094

Group insurance

13,986

$225,330

Tax rates assumed:

Social security

6%

Medicare

1.5%

State unemployment (employer only)

5.4%

Federal unemployment (employer only)

0.6%

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, $40,000 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. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.