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 $312,000$ 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: $105/123$

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

$23,400\mathrm{.}00$

$$

Salaries Expense

$312,000\mathrm{.}00$

$$

Salaries Payable

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

$$

Social Security Tax Payable

$23,400\mathrm{.}00$

$$

Medicare Tax Payable

$21,900\mathrm{.}00$

$$

Apr. $29$

Payroll Tax Expense

$93,600\mathrm{.}00$

$$

Federal Unemployment Tax Payable

$1,620\mathrm{.}00$

$$

State Unemployment Tax Payable

$13,176\mathrm{.}00$

$$

Points:

$18\mathrm{.}78/22$

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.

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: $94/123$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

Apr. $29$

Salaries Expense

$1,460,000\mathrm{.}00$

$$

Social Security Tax Payable

$87,600\mathrm{.}00$

$$

$$

Medicare Tax Payable

$21,900\mathrm{.}00$

$$

Notes Payable

$1,058,500\mathrm{.}00$

$$

Salaries Payable

Apr. $29$

Payroll Tax Expense

$126,180\mathrm{.}00$

$$

Social Security Tax Payable

$87,600\mathrm{.}00$

$$

Medicare Tax Payable

$21,900\mathrm{.}00$

$$

Federal Unemployment Tax Payable

$15,012\mathrm{.}00$

$$

State Unemployment Tax Payable

$13,176\mathrm{.}00$

$$

Points:

$16\mathrm{.}81/22$

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.