Question

prepate journal entries for the following AS OF MARCH 2017

1)Paid $5,000 to employees, with withholding of $960 for federal income taxes, $150 for state income taxes, $310 for social security, $725 for Medicare tax, and $100 for city income tax. Use Employee Tax Withheld account for all withholding.

2)Accrue employer tax (related to July 18th payroll) of $1,352. These taxes include employer portion of FICA and Medicare tax and state and federal unemployment tax. Use Employer Tax Payable account.

3)Paid withholding tax for July 18th payroll, including employer tax.

4)Accrued but unpaid employee salaries were $5,000 with withholding of $880 for federal income taxes. Calculate the payroll using 6.2% FICA tax, 3% for state income taxes, 1.45% Medicare tax, and 2% for city income tax.   Record the payroll, using Employee Tax Withheld account for all withholding taxes.

5)Accrued employer payroll tax of $800.00

6)Sold one of the floor polisher purchased on July 1 for $850. Record all depreciation related to equipment.

Answer 1

Journal

No.	Account Name	Debit	Credit
1.	Salaries expense	$7245
	Employee Tax Withheld account (960+150+310+725+100)		$2245
	Cash		$5000
	(To record salaries expense with withholding various taxes)
2.	Payroll tax expense	1352
	Employer Tax Payable account		1352
	(To record Employer's portion of payroll taxes)
3.	Employee Tax Withheld account	2245
	Employer Tax Payable account	1352
	Cash		3597
	(To record payment of employee and employer tax)
4.	Salaries expense	6512.5
	Employee Tax Withheld account [880 + (6.2% + 3% + 1.45% + 2%) x 5000]		1512.5
	Salaries payable		5000
	(To record salaries expense with withholding various taxes)
5.	Payroll tax expense	800
	Employer Tax Payable account		800
	(To record accrual of employer payroll tax)