Question
The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: Debit Credit Wages Expense 24,762.70 FICA Taxes PayableOASDI
The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:
Debit | Credit | |
Wages Expense | 24,762.70 | |
FICA Taxes PayableOASDI | 1,535.29 | |
FICA Taxes PayableHI | 359.06 | |
FIT Payable | 3,714.00 | |
SIT Payable | 55.25 | |
Group Insurance Payments W/H | 54.70 | |
Cash | 19,044.40 |
Example 6-7
The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):
Debit | Credit | |
Payroll Taxes | 2,785.81 | |
FICA Taxes PayableOASDI | 1,535.29 | |
FICA Taxes PayableHI | 359.06 | |
FUTA Taxes Payable | 148.58 | |
SUTA Taxes Payable | 742.88 |
Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week.
Additional tax information includes: | ||
FICA taxOASDI | 6.2% on first $132,900 | |
FICA taxHI | 1.45% on total pay | |
Federal income tax | $232.00 per pay | |
State income tax | 22% of the federal income tax withholding | |
Federal unemployment tax | 0.6% on first $7,000 | |
State unemployment tax | 0.05% on first $14,000 | |
Additional payroll deductions include: | ||
401(k) plan | 3% per pay | |
Child support garnishment | $100 per pay | |
Health insurance premium | $95 per pay |
Payment of Wages and Payroll Taxes
Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500).
If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Account Debit Credit Payment of wages Wages Expense FICA Taxes Payable-OASDI V FICA Taxes Payable-HIV Employees FIT Payable Employees SIT Payable Retirement Plan Contributions Payable Garnishment Payable Health Insurance Premiums Payable Cash Payroll taxes Payroll Taxes FICA Taxes Payable-OASDI FICA Taxes Payable-HIV
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