Question

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date:

Oct	27	Wages and salaries expense	522	$	308,384.00
		Federal withholding tax payable	220			$	52,425.28
		Social Security tax payable	221				18,583.16
		Medicare tax payable	222				4,346.06
		401(k) contributions payable	223				???
		Health Insurance payable	224				8,655.68
		Savings bonds payable	227				1,912.00
		Wages and salaries payable	226				208,817.61
Oct	27	Wages and salaries payable	226		208,817.61
		Cash	101				208,817.61

What is the amount of the 401(k) contributions for the pay date?

Answer 1

Based on the above information available for McHale Enterprises, we can calculate the 401(k) contributions as follows :-

Calculation of 401(k) expense contribution
	Wages and salaries expense	308,384
Less	Federal withholding tax payable	52,425.28
	Social security tax payable	18,583.16
	Medicare Tax payable	4,346.06
	Health Insurance payable	8,655.68
	Savings bonds payable	1,912
	Wages and salaries payable	208,817.61
	401(k) contributions	13,644.21

As can be seen from the calculation above, the 401(k) contribution for the pay date is $13,644.21