The following information about the weekly payroll was obtained from the records of Boltz Co.:

Salaries:		Deductions:
Sales salaries	$325,000	Income tax withheld	$116,600
Warehouse salaries	200,000	U.S. savings bonds	14,674
Office salaries	142,000	Group insurance	12,006
	$667,000

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 related to the first full week of the year and was paid on January 7, journalize the following entries:

a.	January 7, to record the payroll.
b.	January 7, to record the employers payroll taxes on the payroll for the first week of the year. Since it is a new fiscal year, all $667,000 in salaries is subject to unemployment compensation taxes.

2.

Assuming that the payroll related to the last week of the year and was paid on December 31, journalize the following entries:

a.	December 31, to record the payroll.
b.	December 31, to record the employers payroll taxes on the payroll for the last week of the year. Of the total payroll for the last week of the year, $32,000 is subject to unemployment compensation taxes.