Question

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 in Column Tax rates assumed:Federal unemployment (employer only) You are in Column Tax rates assumed:0.8%
Required:
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
a. December 30, to record the payroll.
b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $38,000 is subject to unemployment compensation taxes.
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
a. On page 11 of the journal: December 30, to record the payroll.
b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $665,000 in salaries is subject to unemployment compensation taxes.

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Chart of Accounts

CHART OF ACCOUNTS
Boltz Co.
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
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Income Tax Payable
220 Group Insurance Payable
221 U.S. Saving Bond Deductions Payable
222 Union Dues Payable
223 Retirement Savings Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Sales Salaries Expense
521 Warehouse Salaries Expense
522 Office Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Supplies Expense
535 Payroll Tax Expense
536 Vacation Pay Expense
537 Pension Expense
538 Cash Short and Over
540 Miscellaneous Expense
710 Interest Expense

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Journal

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