Question

The payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries $1,560,000 Social security tax withheld 93,600 Medicare tax withheld 23,400 Federal income tax withheld 312,000 In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6%, respectively, on $260,000 of salaries. Required: A. Journalize the entry to record the payroll for the week of April 29.* B. Journalize the entry to record the payroll tax expense incurred for the week of April 29.* * Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Date	Description	Post Ref.	Debit	Credit	Assets	Liabilities	Equity
April 29	Salaries Expense		1560000				↓
	Social Security Tax Payable			93600		↑
	Medicare Tax Payable			23400		↑
	Employees Federal Income Tax Payable			312000		↑
	Salaries Payable			1131000		↑
April 29	Payroll Tax Expense		132600				↓
	Social Security Tax Payable			93600		↑
	Medicare Tax Payable			23400		↑
	Federal Unemployment Tax Payable			1560		↑		=260000*0.6%
	State Unemployment Tax Payable			14040		↑		=260000*5.4%

answered by: anonymous