Question

Question 6 & 7 are based on the following information:

Roland Company had gross wages of $180,000 during the week ended December 10. All earnings are subject to social security tax, while the amount of wages subject to federal and state unemployment taxes was $24,000. Tax rates are as follows:

Social security 6.0%
Medicare 1.5%
State unemployment 5.3%
Federal unemployment 0.8%
The total amount withheld from employee wages for federal income taxes was $32,000.

Part 1 of Question 6 - Journalize the entry to record the payroll for the week of December 10. If required, round your answers to the nearest cent.

Part 2 of Question 6 - Journalize the entry to record the payroll tax expense incurred for the week of December 10. If required, round your answers to the nearest cent.

Answer 1

Journal entries"
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Salaries and wages expense		1,80,000
	FICA Social security tax payable (180,000*6.20%)	11160
	FICA MEdicare tax payable (180,000*1.45%)	2610
	Federal Income tax payable			32,000
	Salaries and wages payable			134230
	(for salaries payable)
a.	Payroll tax expense			15234
	FICA Social security tax payable		11160
	FICA Medicare tax payable			2610
	Federal Unemployment tax payable (24000*0.80%)	192
	State Unemployment tax payable (24000*5.30%)	1272
	(for payroll tax expense)