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

The employees of Pelter Company earn wages of $13,900 for the two weeks ending April 12. FIT taxes of $420 were withheld. The entire amount of wages is subject to the FICA taxes, but only $11,500 is taxable under the federal and state unemployment compensation laws. The state contribution rate of the employer is 2.9%. All employees are subject to state unemployment contributions of 0.5% on the April 12 taxable wages of $11,500, and the employees' contributions are to be deducted by the employer.

Payment of the Wages and the Payroll Taxes

Journalize the payment of the wages, and record the payroll taxes, assuming that the contributions of the employer and the employees are recorded in one account, SUTA Taxes Payable.

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 13,900 FICA Taxes Payable-OASDI 861.8 FICA Taxes Payable-HIV 201.55 Employees FIT Payable SUTA Taxes Payable Cash Payroll taxes Payroll Taxes FICA Taxes Payable-OASDI V FICA Taxes Payable-HI FUTA Taxes Payable SUTA Taxes Payable