Question

Payroll Entries

Widmer Company had gross wages of $254,000 during the week ended June 17. The amount of wages subject to social security tax was $228,600, while the amount of wages subject to federal and state unemployment taxes was $32,000. Tax rates are as follows:

Social security	6.0%
Medicare	1.5%
State unemployment	5.4%
Federal unemployment	0.8%

The total amount withheld from employee wages for federal taxes was $50,800.

If an amount box does not require an entry, leave it blank. If required, round answers to two decimal places.

a. Journalize the entry to record the payroll for the week of June 17.

June 7	Wages Expense	fill in the blank cf5e00fc405afed_2	fill in the blank cf5e00fc405afed_3
	Social Security Tax Payable	fill in the blank cf5e00fc405afed_5	fill in the blank cf5e00fc405afed_6
	Medicare Tax Payable	fill in the blank cf5e00fc405afed_8	fill in the blank cf5e00fc405afed_9
	Employees Federal Income Tax Payable	fill in the blank cf5e00fc405afed_11	fill in the blank cf5e00fc405afed_12
	Wages Payable	fill in the blank cf5e00fc405afed_14	fill in the blank cf5e00fc405afed_15

b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

June 7	fill in the blank	fill in the blank 6aab1a06900304f_2	fill in the blank 6aab1a06900304f_3
		fill in the blank 6aab1a06900304f_5	fill in the blank 6aab1a06900304f_6
		fill in the blank 6aab1a06900304f_8	fill in the blank 6aab1a06900304f_9
		fill in the blank 6aab1a06900304f_11	fill in the blank 6aab1a06900304f_12
		fill in the blank 6aab1a06900304f_14	fill in the blank 6aab1a06900304f_15

Entries for Notes Payable

A business issued a 60-day, 5% note for $88,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year.

If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar.

a.		fill in the blank 2	fill in the blank 3
		fill in the blank 5	fill in the blank 6
b .		fill in the blank 8	fill in the blank 9
		fill in the blank 11	fill in the blank 12
		fill in the blank 14	fill in the blank 15

Answer 1

a
June 7	Wages Expense	254000
	Social Security Tax Payable		13716	=228600*6%
	Medicare Tax Payable		3810	=254000*1.5%
	Employees Federal Income Tax Payable		50800
	Wages Payable		185674
b
June 7	Payroll tax expense	19510
	Social Security Tax Payable		13716
	Medicare Tax Payable		3810
	State unemployment tax payable		1728	=32000*5.4%
	Federal unemployment tax payable		256	=32000*0.8%

a	Accounts Payable	88000
	Notes payable		88000
b	Interest expense	733		=88000*5%*60/360
	Notes payable	88000
	Cash		88733