Question

Journalize Period Payroll

The payroll register of Wang Heritage Co. indicates $2,280 of social security withheld and $570 of Medicare tax withheld on total salaries of $38,000 for the period. Federal withholding for the period totaled $6,460. Retirement savings withheld from employee paychecks were $2,600 for the period.

Provide the journal entry for the period's payroll. If an amount box does not require an entry, leave it blank.

Answer 1

Answer:

Date	Particulars	Debit ($)	Credit ($)
	Salaries Expense	38,000
	Social Security Tax payable		2,280
	Medicare Tax payable		570
	Employees Federal Income Tax payable		6,460
	Retirment savings payable		2,600
	Salaries payable		26,090
	(To record salary expense in payroll period)

Working Notes:

Tax Expense = Social Security + Medicare + Employee Federal Income Tax Payable + Retirement savings
=2280+570+6460+2600
=$11910

Salariees payable = Salary - Tax expenses
=38000-11910
=$26090