Question

Journalize the following payroll from information in the payroll register and the related employer payroll taxes and other expense:

Gross pay $ 200,000

Federal Income Tax Withheld 30,000

FICA - Social Security 12,500

FICA - Medicare 2,900

401(k) withholding 12,000

Union dues withheld 2,000

United Way withheld 3,000

Net Pay 137,600

FUTA 1,500

SUTA 10,500

ER 401(k) Match 25%

Answer 1

1. Entry to record the payroll:

Date	General Journal	Debit	Credit
	Salary Expense	$200,000
	Employee federal income taxes payable		$30,000
	FICA - Social Security taxes payable		$12,500
	FICA - Medicare taxes payable		$2,900
	401(K) payable		$12,000
	Union dues payable		$2,000
	United way payable		$3,000
	Salaries Payable		$137,600
	(To record payroll)

.

2. Entry to record employer payroll taxes and other expense:

Date	General Journal	Debit	Credit
	Payroll Expense	$18,400
	FICA - Social Security taxes payable		$12,500*
	FICA - Medicare taxes payable		$2,900**
	401(K) payable           [$12,000 x 25%]		$3,000
	(To record payroll expense)

*Employer's portion of FICA - Social Security tax is equal to the Employees portion of FICA Social security tax = $12,500

**Employer's portion of FICA - Medicare tax is equal to the Employees portion of FICA Medicare tax.= $2,900