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%
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.
|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)|
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