Question

Payroll Entries

The payroll register for D. Salah Company for the week ended May 18 indicated the following:

Salaries	$709,000
Federal income tax withheld	141,800

The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $13,000 of salaries.

If an amount box does not require an entry, leave it blank.

a. Journalize the entry to record the payroll for the week of May 18.

May 18

b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.

May 18

Answer 1

May 18	Salaries expense	709000
	Social Security tax payable		42540	=709000*6%
	Medicare tax payable		10635	=709000*1.5%
	Employees Federal Income tax payable		141800
	Salaries payable		514025
May 18	Payroll tax expense	53981
	Social Security tax payable		42540
	Medicare tax payable		10635
	State unemployment tax payable		702	=13000*5.4%
	Federal unemployment tax payable		104	=13000*0.8%