EX 11-12 Payroll entries
The payroll register for Robinson Company for the week ended November 18 indicated the following:
Salaries $1,300,000 Social security tax withheld 61,100 Medicare tax withheld 19,500 Federal income tax withheld 260,000
In addition, state and federal unemployment taxes were calculated at the rate of 5.2% and 0.8%, respectively, on $240,000 of salaries.
a. Journalize the entry to record the payroll for the week of November 18.
b. Journalize the entry to record the payroll tax expense incurred for the week of November 18.
Answer:
a. Salaries Expense.......................................................... 1,300,000 Social Security Tax Payable .................................. 61,100 Medicare Tax Payable............................................. 19,500 Employees Federal Income Tax Payable.............. 260,000 Salaries Payable ..................................................... 959,400
b. Payroll Tax Expense .................................................... 95,000 Social Security Tax Payable .................................. 61,100 Medicare Tax Payable............................................. 19,500 State Unemployment Tax Payable......................... 12,480* Federal Unemployment Tax Payable..................... 1,920** *5.2% × $240,000 **0.8% × $240,000
Salaries $1,300,000 Social security tax withheld 61,100 Medicare tax withheld 19,500 Federal income tax withheld 260,000
In addition, state and federal unemployment taxes were calculated at the rate of 5.2% and 0.8%, respectively, on $240,000 of salaries.
a. Journalize the entry to record the payroll for the week of November 18.
b. Journalize the entry to record the payroll tax expense incurred for the week of November 18.
Answer:
a. Salaries Expense.......................................................... 1,300,000 Social Security Tax Payable .................................. 61,100 Medicare Tax Payable............................................. 19,500 Employees Federal Income Tax Payable.............. 260,000 Salaries Payable ..................................................... 959,400
b. Payroll Tax Expense .................................................... 95,000 Social Security Tax Payable .................................. 61,100 Medicare Tax Payable............................................. 19,500 State Unemployment Tax Payable......................... 12,480* Federal Unemployment Tax Payable..................... 1,920** *5.2% × $240,000 **0.8% × $240,000
