1b11_P7k_war9-1 - Only $30,000 of salaries are subject to...

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Chapter 11—Current Liabilities 7. 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 30,000 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%.
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Unformatted text preview: Only $30,000 of salaries are subject to unemployment taxes. ANS: (a) Sales Salaries Expense 125,000 Office Salaries Expense 30,000 Social Security Tax Payable 10,200 Medicare Tax Payable 2,550 Federal Income Tax Payable 32,300 Medical Insurance Payable 7,370 Salaries Payable 102,580 (b) Payroll Taxes Expense 13,920 Social Security Tax Payable 10,200 Medicare Tax Payable 2,550 State Unemployment Tax Payable 930 Federal Unemployment Tax Payable 240 DIF: 3 OBJ: 04 7...
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