Jan. 31 Received the following data on the monthly payroll from the payroll clerk:
Direct Labor (already recorded): $23,016.50
New payroll data (to be recorded):
Superintendent’s Salary 3,100.00
Sales salaries 11,975.00
Officers’ salaries 7,140.00
Office salaries 6310.10
Record the monthly payroll in the general journal. Remember that direct labor payroll already has been recorded as it was incurred in Jan. Salaries for indirect labor are recorded only at the end of the month. Debit Factory Overhead for Indirect Labor and Superintendent’s salaries, debit other salary expense account for the appropriate amounts, credit FICA Tax Payable for 7.65% of gross pay, credit Employees’ Income Tax Payable for 18% of gross pay, and credit Salaries Payable for the net pay.
All payroll taxes relating to factory personnel are debited to Factory Overhead; all payroll taxes related to non-factory personnel are debited Payroll Taxes Expense – General. The FICA tax is 7.65% of gross pay, state unemployment. Tax is 5.4% of gross pay and federal unemployment. Tax is 0.8% of gross pay. Since this is the first month in the current year, no employee has reached the ceilings on the payroll taxes. Round the charge to Factory Overhead down to the next cent.
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