The summary of the payroll for the monthly pay period ending July 15 indicated the following:
Sales salaries $125,000
Federal income tax withheld 32,300
Office salaries 35,000
Medical insurance withheld 7,370
Social security tax withheld 10,200
Medicare tax withheld 2,550
Required:
Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $25,000 of salaries are subject to unemployment taxes. Refer to the Chart of Accounts for exact wording of account titles.
Chart of Accounts
CHART OF ACCOUNTS
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Merchandise Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
221 Salaries Payable
222 Social Security Tax Payable
223 Medicare Tax Payable
224 Federal Income Tax Payable
225 State Income Tax Payable
226 Federal Unemployment Tax Payable
227 State Unemployment Tax Payable
228 State Disability Insurance
231 Medical Insurance Payable
232 Retirement Savings Deductions Payable
233 Union Dues Payable
234 Vacation Pay Payable
241 Product Warranty Payable
EQUITY
310 Owner, Capital
311 Owner, Drawing
312 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
520 Sales Salaries Expense
521 Office Salaries Expense
525 Delivery Expense
526 Repairs Expense
531 Rent Expense
533 Insurance Expense
534 Supplies Expense
535 Cash Short and Over
536 Product Warranty Expense
541 Payroll Tax Expense
542 Vacation Pay Expense
543 Federal Income Tax Expense
544 State Income Tax Expense
551 Depreciation Expense-Building
552 Depreciation Expense-Office Equipment
590 Miscellaneous Expense
710 Interest Expense
General Journal
Journalize the entries to record the payroll. Refer to the Chart of Accounts for exact wording of account titles.
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Journalize the entries to record the employer's payroll tax expense. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $25,000 of salaries are subject to unemployment taxes. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT
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