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12 July, 01:59

During the month of March, Sunland Company's employees earned wages of $79,000. Withholdings related to these wages were $6,044 for Social Security (FICA), $9,258 for federal income tax, $3,827 for state income tax, and $494 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $864 for state unemployment tax. Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April.

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  1. 12 July, 03:57
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    The Journal entry is as follows:

    On March 31st,

    Salaries and Wages Expense A/c Dr. $79,000

    To Wages Payable $59,377

    To Federal Withholding Payable $9,258

    To FICA Payable $6,044

    To State Withholding Payable $3,827

    To Union Dues Payable $494

    (To record the salaries and wages expense and salaries and wages payable)
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