The following information about the payroll for the week ended December 30 was obtained from the records of Sparta Co.: Tax rates assumed: Social security,

Question

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The following information about the payroll for the week ended December 30 was obtained from the records of Sparta Co.:

Tax rates assumed:
Social security, 6% on first $100,000 of employee annual earnings
Medicare, 1.5%
State unemployment (employer only), 3.8%
Federal unemployment (employer only), 0.8%

Instructions
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries:
a. December 30, to record the payroll.
b. December 30, to record the employer€™s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $18,000 is subject to unemployment compensation taxes.
2. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the following entries:
a. December 30, to record the payroll.
b. January 4, to record the employer€™s payroll taxes on the payroll to be paid on January4.

Salaries: Deductions: Sales salaries Warehouse salaries Office salaries $436,000 93,400 178,600 $708,000 Income tax withheld Social security tax withheld Medicare tax withheld U.S. savings bonds Group insurance $127,440 40,002 10,620 24,780 40,356