Question

According to a summary of the payroll of Sinclair Company, $545,000 was subject to the 6.0%...

According to a summary of the payroll of Sinclair Company, $545,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes.

Required:

(a) Calculate the employer’s payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.

(b) Journalize the entry to record the accrual of the employer's payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Sinclair Company

General Ledger

ASSETS

110 Cash

111 Accounts Receivable

112 Interest Receivable

113 Notes Receivable

115 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

221 Salaries Payable

222 Social Security Tax Payable

223 Medicare Tax Payable

224 Federal Withholding Tax Payable

225 State Withholding Tax Payable

226 Federal Unemployment Tax Payable

227 State Unemployment Tax Payable

228 State Disability Insurance

231 Medical Insurance Payable

232 Retirement Savings Deductions Payable

233 Union Dues Payable

234 Vacation Pay Payable

235 Unfunded Pension Liability

241 Product Warranty Payable

242 EPA Fines Payable

243 Litigation Claims Payable

EQUITY

310 Common Stock

311 Retained Earnings

312 Dividends

313 Income Summary

REVENUE

410 Sales

610 Interest Revenue

EXPENSES

510 Cost of Merchandise Sold

520 Salaries Expense

525 Delivery Expense

526 Repairs Expense

531 Rent Expense

533 Insurance Expense

534 Supplies Expense

535 Cash Short and Over

536 Product Warranty Expense

541 Vacation Pay Expense

542 Pension Expense

543 Payroll Tax Expense

544 Federal Income Tax Expense

545 State Income Tax Expense

561 Depreciation Expense-Building

562 Depreciation Expense-Office Equipment

570 Damage Awards and Fines

590 Miscellaneous Expense

710 Interest Expense

Calculate the employer’s payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%.
Employer’s payroll taxes

$

Journalize the entry to record the accrual of the employer's payroll taxes on December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

1

2

3

4

5

Homework Answers

Answer #1
a
Social security tax 32700 =545000*6%
Medicare tax 8175 =545000*1.5%
State unemployment tax 420 =10000*4.2%
Federal unemployment tax 80 =10000*0.8%
Employer’s payroll taxes 41375

b

Date Description Post. Ref. Debit Credit
December 31 Payroll Tax Expense 41375
     Social Security Tax Payable 32700
     Medicare Tax Payable 8175
     State Unemployment Tax Payable 420
Federal Unemployment Tax Payable 80
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
According to a summary of the payroll of Scotland Company, salaries for the period were $500,000....
According to a summary of the payroll of Scotland Company, salaries for the period were $500,000. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%. Required: (a) Journalize the entry to record the accrual of payroll.* (b) Journalize the entry to record the accrual of payroll taxes.* *Refer to the Chart of Accounts for exact wording...
According to a summary of the payroll of Guthrie Co., $790,000 was subject to the 6.0%...
According to a summary of the payroll of Guthrie Co., $790,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $40,000 was subject to state and federal unemployment taxes. Required: A. Calculate the employer’s payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.6%. B. On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.
According to a summary of the payroll of Murtagh Co., $750,000 was subject to the 6.0%...
According to a summary of the payroll of Murtagh Co., $750,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $50,000 was subject to state and federal unemployment taxes. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. Journalize the entry to record the accrual of payroll taxes.
The payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries...
The payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries $1,420,000 Social security tax withheld 85,200 Medicare tax withheld 21,300 Federal income tax withheld 284,000 In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6%, respectively, on $266,000 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...
The following information about the payroll for the week ended December 30 was obtained from the...
The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries: Deductions: Sales salaries $335,000 Income tax withheld $116,800 Warehouse salaries 186,000 U.S. savings bonds 14,630 Office salaries 144,000 Group insurance 11,970 You are in Column Salaries: $665,000 You are in Column Deductions: Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% You are in Column Tax rates assumed:Medicare You are in Column Tax rates assumed:1.5% You are...
Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $624,000 was subject...
Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $624,000 was subject to the 6.0% social security tax and $768,000 was subject to the 1.5% Medicare tax. Also, $21,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.6%. $ b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it...
Townson Company had gross wages of $180,000 during the week ended December 10. All earnings are...
Townson 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. Required: (a) Journalize the entry to record the payroll for the week of December 10.* (b)...
Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September. The cost to repair...
Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 9% of the sales price. On October 15, a customer required a $100 part replacement, plus $86 labor under the warranty. Required: Provide the journal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Ecco...
According to a payroll register summary of Frederickson Company, the amount of employees’ gross pay in...
According to a payroll register summary of Frederickson Company, the amount of employees’ gross pay in December was $850,000, of which $80,000 was not subject to Social Security taxes of 6.2% and $750,000 was not subject to state and federal unemployment taxes. Determine the employer’s payroll tax expense for the month, using the following rates: FICA 7.65%, state unemployment 5.4%, and federal unemployment 0.8%. PAYROLL TAX EXPENSE: $ Prepare the journal entry to record December payroll tax expense. ACCOUNT TITLE...
A business issued a 45-day, 4% note for $240,000 to a creditor on account. Journalize the...
A business issued a 45-day, 4% note for $240,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies...