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5 January, 15:15

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 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 taxe

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  1. 5 January, 18:13
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    a)

    Dr Sales Salaries Expense 125,000

    Dr Office Salaries Expense 35,000

    Cr Social Security Tax Payable 10,200

    Cr Medicare Tax Payable 2,550

    Cr Federal Income Tax Payable 32,300

    Cr Medical Insurance Payable 7,370

    Cr Salaries Payable 107,580

    (b.

    Dr Payroll Taxes Expense 13,725

    Cr Social Security Tax Payable 10,200

    Cr Medicare Tax Payable 2,550

    Cr State Unemployment Tax Payable 775

    Cr Federal Unemployment Tax Payable 200

    Explanation:

    a)

    Dr Sales Salaries Expense 125,000

    Dr Office Salaries Expense 35,000

    Cr Social Security Tax Payable 10,200

    Cr Medicare Tax Payable 2,550

    Cr Federal Income Tax Payable 32,300

    Cr Medical Insurance Payable 7,370

    Cr Salaries Payable 107,580

    (b.

    Dr Payroll Taxes Expense 13,725

    Cr Social Security Tax Payable 10,200

    Cr Medicare Tax Payable 2,550

    Cr State Unemployment Tax Payable 775

    Cr Federal Unemployment Tax Payable 200
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