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Entries for payroll and payroll taxes The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries:     Deductions:     Sales salaries $625,000     Income tax withheld $232,260   Warehouse salaries 240,000     U.S. savings bonds 35,500   Office salaries 320,000     Group insurance 53,325   $1,185,000           Tax rates assumed:   Social security, 6%   Medicare, 1.5%   State unemployment (employer only), 5.4%   Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank. 1a.  Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.   1a.  Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.   Dec. 30 1. Cash Employees Income Tax Expense Medicare Tax Payable Sales Salaries Expense Sales Salaries Payable 2. Cash Medicare Tax Payable Social Security Tax Payable Warehouse Salaries Expense Warehouse Salaries Payable 3. Cash Employees Income Tax Expense Office Salaries Expense Office Salaries Payable S. Savings Bond Deductions Payable 4. Cash Employees Income Tax Expense Employees Income Tax Payable Office Salaries Expense Warehouse Salaries Expense 5. Cash Sales Salaries Expense Social Security Tax Expense Social Security Tax Payable Warehouse Salaries Expense 6. Cash Medicare Tax Expense Medicare Tax Payable Office Salaries Expense Sales Salaries Expense 7. Bond Deductions Expense Cash Office Salaries Expense S. Savings Bond Deductions Payable Warehouse Salaries Expense 8. Accounts Payable Group Insurance Expense Group Insurance Payable Office Salaries Expense Sales Salaries Expense 9 Accounts Receivable Office Salaries Expense Salaries Payable Sales Salaries Expense Warehouse Salaries Expense   1b.   Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $30,000 is subject to unemployment compensation taxes. Dec. 30 1. Federal Unemployment Tax Payable Medicare Tax Payable Payroll Tax Expense Salaries Expense Social Security Tax Payable 2. Accounts Payable Federal Unemployment Tax Expense Payroll Tax Expense Payroll Tax Payable Social Security Tax Payable 3. Cash Medicare Tax Expense Medicare Tax Payable Payroll Tax Expense Payroll Tax Payable 4. Cash Office Salaries Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable 5. Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Salaries Payable Warehouse Salaries Expense 2a.   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 entry on December 30, to record the payroll. Dec 30. 1. Cash Employees Income Tax Expense Medicare Tax Payable Sales Salaries Expense Sales Salaries Payable 2. Cash Medicare Tax Payable Social Security Tax Payable Warehouse Salaries Expense Warehouse Salaries Payable 3. Cash Employees Income Tax Expense Office Salaries Expense Office Salaries Payable S. Savings Bond Deductions Payable 4. Cash Employees Income Tax Expense Employees Income Tax Payable Office Salaries Expense Warehouse Salaries Expense 5. Cash Sales Salaries Expense Social Security Tax Expense Social Security Tax Payable Warehouse Salaries Expense 6. Cash Medicare Tax Expense Medicare Tax Payable Office Salaries Expense Sales Salaries Expense 7. Bond Deductions Expense Cash Office Salaries Expense S. Savings Bond Deductions Payable Warehouse Salaries Expense 8. Accounts Payable Group Insurance Expense Group Insurance Payable Office Salaries Expense Sales Salaries Expense 9. Accounts Receivable Office Salaries Expense Salaries Payable Sales Salaries Expense Warehouse Salaries Expense 2b.  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 entry on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes. Dec 30. 1. Federal Unemployment Tax Payable Medicare Tax Payable Payroll Tax Expense Salaries Expense Social Security Tax Payable 2. Accounts Payable Federal Unemployment Tax Expense Payroll Tax Expense Payroll Tax Payable Social Security Tax Payable 3. Cash Medicare Tax Expense Medicare Tax Payable Payroll Tax Expense Payroll Tax Payable 4. Cash Office Salaries Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable 5. Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Salaries Payable Warehouse Salaries Expense

Entries for payroll and payroll taxes The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries:     Deductions:     Sales salaries $625,000     Income tax withheld $232,260   Warehouse salaries 240,000     U.S. savings bonds 35,500   Office salaries 320,000     Group insurance 53,325   $1,185,000           Tax rates assumed:   Social security, 6%   Medicare, 1.5%   State unemployment (employer only), 5.4%   Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank. 1a.  Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.   1a.  Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.   Dec. 30 1. Cash Employees Income Tax Expense Medicare Tax Payable Sales Salaries Expense Sales Salaries Payable 2. Cash Medicare Tax Payable Social Security Tax Payable Warehouse Salaries Expense Warehouse Salaries Payable 3. Cash Employees Income Tax Expense Office Salaries Expense Office Salaries Payable S. Savings Bond Deductions Payable 4. Cash Employees Income Tax Expense Employees Income Tax Payable Office Salaries Expense Warehouse Salaries Expense 5. Cash Sales Salaries Expense Social Security Tax Expense Social Security Tax Payable Warehouse Salaries Expense 6. Cash Medicare Tax Expense Medicare Tax Payable Office Salaries Expense Sales Salaries Expense 7. Bond Deductions Expense Cash Office Salaries Expense S. Savings Bond Deductions Payable Warehouse Salaries Expense 8. Accounts Payable Group Insurance Expense Group Insurance Payable Office Salaries Expense Sales Salaries Expense 9 Accounts Receivable Office Salaries Expense Salaries Payable Sales Salaries Expense Warehouse Salaries Expense   1b.   Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $30,000 is subject to unemployment compensation taxes. Dec. 30 1. Federal Unemployment Tax Payable Medicare Tax Payable Payroll Tax Expense Salaries Expense Social Security Tax Payable 2. Accounts Payable Federal Unemployment Tax Expense Payroll Tax Expense Payroll Tax Payable Social Security Tax Payable 3. Cash Medicare Tax Expense Medicare Tax Payable Payroll Tax Expense Payroll Tax Payable 4. Cash Office Salaries Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable 5. Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Salaries Payable Warehouse Salaries Expense 2a.   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 entry on December 30, to record the payroll. Dec 30. 1. Cash Employees Income Tax Expense Medicare Tax Payable Sales Salaries Expense Sales Salaries Payable 2. Cash Medicare Tax Payable Social Security Tax Payable Warehouse Salaries Expense Warehouse Salaries Payable 3. Cash Employees Income Tax Expense Office Salaries Expense Office Salaries Payable S. Savings Bond Deductions Payable 4. Cash Employees Income Tax Expense Employees Income Tax Payable Office Salaries Expense Warehouse Salaries Expense 5. Cash Sales Salaries Expense Social Security Tax Expense Social Security Tax Payable Warehouse Salaries Expense 6. Cash Medicare Tax Expense Medicare Tax Payable Office Salaries Expense Sales Salaries Expense 7. Bond Deductions Expense Cash Office Salaries Expense S. Savings Bond Deductions Payable Warehouse Salaries Expense 8. Accounts Payable Group Insurance Expense Group Insurance Payable Office Salaries Expense Sales Salaries Expense 9. Accounts Receivable Office Salaries Expense Salaries Payable Sales Salaries Expense Warehouse Salaries Expense 2b.  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 entry on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes. Dec 30. 1. Federal Unemployment Tax Payable Medicare Tax Payable Payroll Tax Expense Salaries Expense Social Security Tax Payable 2. Accounts Payable Federal Unemployment Tax Expense Payroll Tax Expense Payroll Tax Payable Social Security Tax Payable 3. Cash Medicare Tax Expense Medicare Tax Payable Payroll Tax Expense Payroll Tax Payable 4. Cash Office Salaries Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable 5. Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Salaries Payable Warehouse Salaries Expense

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter11: Current Liabilities And Payroll
Section: Chapter Questions
Problem 2PA: The following information about the payroll for the week ended December 30 was obtained from the...
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Entries for payroll and payroll taxes

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

Salaries:

 

 

Deductions:

 

 

Sales salaries

$625,000

 

 

Income tax withheld

$232,260

 

Warehouse salaries

240,000

 

 

U.S. savings bonds

35,500

 

Office salaries

320,000

 

 

Group insurance

53,325

 

$1,185,000

 

 

 

 

 

Tax rates assumed:

 

Social security, 6%

 

Medicare, 1.5%

 

State unemployment (employer only), 5.4%

 

Federal unemployment (employer only), 0.8%

Required:

If an amount box does not require an entry, leave it blank.

1a.  Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.

 

1a.  Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.

 

Dec. 30

1.

  • Cash
  • Employees Income Tax Expense
  • Medicare Tax Payable
  • Sales Salaries Expense
  • Sales Salaries Payable

2.

  • Cash
  • Medicare Tax Payable
  • Social Security Tax Payable
  • Warehouse Salaries Expense
  • Warehouse Salaries Payable

3.

  • Cash
  • Employees Income Tax Expense
  • Office Salaries Expense
  • Office Salaries Payable
  • S. Savings Bond Deductions Payable

4.

  • Cash
  • Employees Income Tax Expense
  • Employees Income Tax Payable
  • Office Salaries Expense
  • Warehouse Salaries Expense

5.

  • Cash
  • Sales Salaries Expense
  • Social Security Tax Expense
  • Social Security Tax Payable
  • Warehouse Salaries Expense

6.

  • Cash
  • Medicare Tax Expense
  • Medicare Tax Payable
  • Office Salaries Expense
  • Sales Salaries Expense

7.

  • Bond Deductions Expense
  • Cash
  • Office Salaries Expense
  • S. Savings Bond Deductions Payable
  • Warehouse Salaries Expense

8.

  • Accounts Payable
  • Group Insurance Expense
  • Group Insurance Payable
  • Office Salaries Expense
  • Sales Salaries Expense

9

  • Accounts Receivable
  • Office Salaries Expense
  • Salaries Payable
  • Sales Salaries Expense
  • Warehouse Salaries Expense

 

1b.   Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $30,000 is subject to unemployment compensation taxes.

Dec. 30

1.

  • Federal Unemployment Tax Payable
  • Medicare Tax Payable
  • Payroll Tax Expense
  • Salaries Expense
  • Social Security Tax Payable

2.

  • Accounts Payable
  • Federal Unemployment Tax Expense
  • Payroll Tax Expense
  • Payroll Tax Payable
  • Social Security Tax Payable

3.

  • Cash
  • Medicare Tax Expense
  • Medicare Tax Payable
  • Payroll Tax Expense
  • Payroll Tax Payable

4.

  • Cash
  • Office Salaries Expense
  • Salaries Payable
  • State Unemployment Tax Expense
  • State Unemployment Tax Payable

5.

  • Cash
  • Federal Unemployment Tax Expense
  • Federal Unemployment Tax Payable
  • Salaries Payable
  • Warehouse Salaries Expense

2a.   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 entry on December 30, to record the payroll.

Dec 30.

1.

  • Cash
  • Employees Income Tax Expense
  • Medicare Tax Payable
  • Sales Salaries Expense
  • Sales Salaries Payable

2.

  • Cash
  • Medicare Tax Payable
  • Social Security Tax Payable
  • Warehouse Salaries Expense
  • Warehouse Salaries Payable

3.

  • Cash
  • Employees Income Tax Expense
  • Office Salaries Expense
  • Office Salaries Payable
  • S. Savings Bond Deductions Payable

4.

  • Cash
  • Employees Income Tax Expense
  • Employees Income Tax Payable
  • Office Salaries Expense
  • Warehouse Salaries Expense

5.

  • Cash
  • Sales Salaries Expense
  • Social Security Tax Expense
  • Social Security Tax Payable
  • Warehouse Salaries Expense

6.

  • Cash
  • Medicare Tax Expense
  • Medicare Tax Payable
  • Office Salaries Expense
  • Sales Salaries Expense

7.

  • Bond Deductions Expense
  • Cash
  • Office Salaries Expense
  • S. Savings Bond Deductions Payable
  • Warehouse Salaries Expense

8.

  • Accounts Payable
  • Group Insurance Expense
  • Group Insurance Payable
  • Office Salaries Expense
  • Sales Salaries Expense

9.

  • Accounts Receivable
  • Office Salaries Expense
  • Salaries Payable
  • Sales Salaries Expense
  • Warehouse Salaries Expense

2b.  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 entry on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes.

Dec 30.

1.

  • Federal Unemployment Tax Payable
  • Medicare Tax Payable
  • Payroll Tax Expense
  • Salaries Expense
  • Social Security Tax Payable

2.

  • Accounts Payable
  • Federal Unemployment Tax Expense
  • Payroll Tax Expense
  • Payroll Tax Payable
  • Social Security Tax Payable

3.

  • Cash
  • Medicare Tax Expense
  • Medicare Tax Payable
  • Payroll Tax Expense
  • Payroll Tax Payable

4.

  • Cash
  • Office Salaries Expense
  • Salaries Payable
  • State Unemployment Tax Expense
  • State Unemployment Tax Payable

5.

  • Cash
  • Federal Unemployment Tax Expense
  • Federal Unemployment Tax Payable
  • Salaries Payable
  • Warehouse Salaries Expense
Entries for payroll and payroll taxes The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: Sales salaries $625,000 Income tax withheld $232,260 Warehouse salaries 240,000 U.S. savings bonds 35,500 Office salaries 320,000 Group insurance 53,325 $1,185,000 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank. 1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll. Date Account Debit Credit Dec. 30 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $30,000 is subject to unemployment compensation taxes. Date Account Debit Credit Dec. 30
Transcribed Image Text:Entries for payroll and payroll taxes The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: Sales salaries $625,000 Income tax withheld $232,260 Warehouse salaries 240,000 U.S. savings bonds 35,500 Office salaries 320,000 Group insurance 53,325 $1,185,000 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank. 1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll. Date Account Debit Credit Dec. 30 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $30,000 is subject to unemployment compensation taxes. Date Account Debit Credit Dec. 30
1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $30,000 is subject to unemployment compensation taxes. Date Account Debit Credit Dec. 30 2a. 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 entry on December 30, to record the payroll. Date Account Debit Credit Dec. 30 2b. 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 entry on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes. Date Account Debit Credit Jan. 4
Transcribed Image Text:1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $30,000 is subject to unemployment compensation taxes. Date Account Debit Credit Dec. 30 2a. 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 entry on December 30, to record the payroll. Date Account Debit Credit Dec. 30 2b. 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 entry on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes. Date Account Debit Credit Jan. 4
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