The payroll register for Schmidt Company for the week ended April $29$ indicated the following:

Salaries $$1,560,000$

Social security tax withheld $93,600$

Medicare tax withheld $23,400$

Federal income tax withheld $312,000$

In addition, state and federal unemployment taxes were computed at the rate of $5\mathrm{.}4\%$ and $0\mathrm{.}6\%,$ respectively, on $$260,000$ of salaries.

Required:

a$.$ Journalize the entry to record the payroll for the week of April $29.*$

b$.$ Journalize the entry to record the payroll tax expense incurred for the week of April $29.*$

$*$Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTS

Schmidt Company

General Ledger

ASSETS

$110$ Cash

$111$ Accounts Receivable

$112$ Interest Receivable

$113$ Notes Receivable

$115$ Merchandise Inventory

$116$ Supplies

$118$ Prepaid Insurance

$120$ Land

$123$ Building

$124$ Accumulated Depreciation$-$Building

$125$ Office Equipment

$126$ Accumulated Depreciation$-$Office Equipment

LIABILITIES

$210$ Accounts Payable

$213$ Interest Payable

$214$ Notes Payable

$215$ Salaries Payable

$216$ Social Security Tax Payable

$217$ Medicare Tax Payable

$218$ Employees Federal Income Tax Payable

$219$ Employees State Income Tax Payable

$221$ Retirement Savings Deductions Payable

$224$ Federal Unemployment Tax Payable

$225$ State Unemployment Tax Payable

$226$ Vacation Pay Payable

$227$ Unfunded Pension Liability

$228$ Product Warranty Payable

EQUITY

$310$ Owner, Capital

$311$ Owner, Drawing

REVENUE

$410$ Sales

$610$ Interest Revenue

EXPENSES

$510$ Cost of Merchandise Sold

$520$ Salaries Expense

$524$ Depreciation Expense$-$Building

$525$ Delivery Expense

$526$ Repairs Expense

$529$ Selling Expenses

$531$ Rent Expense

$532$ Depreciation Expense$-$Office Equipment

$533$ Insurance Expense

$534$ Supplies Expense

$535$ Payroll Tax Expense

$536$ Vacation Pay Expense

$537$ Pension Expense

$538$ Cash Short and Over

$539$ Product Warranty Expense

$540$ Miscellaneous Expense

$710$ Interest Expense a$.$ Journalize the entry to record the payroll for the week of April $29.*$

b$.$ Journalize the entry to record the payroll tax expense incurred for the week of April $29.*$

$*$Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

How does grading work?

PAGE $11$

JOURNALACCOUNTING EQUATION

Score: $115/123$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

Apr. $29$

Salaries Expense

$1,560,000\mathrm{.}00$

$$

Social Security Tax Payable

$93,600\mathrm{.}00$

$$

$$

Medicare Tax Payable

$23,400\mathrm{.}00$

$$

Employees Federal Income Tax Payable

$312,000\mathrm{.}00$

$$

Salaries Payable

$1,131,000\mathrm{.}00$

$$

Apr. $29$

Social Security Tax Payable

$93,600\mathrm{.}00$

$$

Medicare Tax Payable

$23,400\mathrm{.}00$

$$

Payroll Tax Expense

$41,775\mathrm{.}00$

$$

Federal Unemployment Tax Payable

$109,800\mathrm{.}00$

$$

State Unemployment Tax Payable

$60\mathrm{.}00$

$$

Points:

$20\mathrm{.}57/22$

Check My Work

a$.$ Gross pay is the amount that employees have earned before taxes and deductions. A portion of employees' earnings is owed for such items as state and federal taxes. Net pay is also known as take$-$home pay.

b$.$ Remember that there is typically a maximum amount of earnings subject to state and federal unemployment taxes. Recall that the amounts calculated are amounts that are owed.