Question

Private Publishing has two office employees. A summary of their earnings and the related taxes withheld from their pay for the week ending August 7, 2019, follows.

  

	Ann Chen				David Kendrick
Gross earnings	$	1,220.00				$	1,090.00
Social security deduction		(75.64	)				(67.58	)
Medicare deduction		(17.69	)				(15.81	)
Income tax withholding		(326.59	)				(196.31	)
Net pay for week	$	800.08				$	810.30

1&2. Prepare the general journal entry to record the company’s payroll and to summarize the checks to pay the weekly payroll.

Answer 1

Journal entries
S.no.	Accounts title and explanations	Debit $	Credit $
a.	Salaries and wages expense	2,310		(1220+1090)
	FICA Social security tax payable		143.22	(75.64+67.58)
	FICA Medicare tax payable		33.5	(17.69+15.81)
	Federal Income tax payable		522.9	(326.59+196.31)
	Salaries and wages payable		1610.38	(800.08+810.30)
	(for salaries due)
b.	Salaries and wages payable	1610.38
	Cash account			1610.38
	(for payment of wages)