Journalize the december to record the payroll entries

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Reference no: EM132684950

The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:

Salaries:                                            Deductions:
Sales salaries $325,000            Income tax withheld $116,600
Warehouse salaries 200,000         U.S. savings bonds 14,674
Office salaries 142,000                 Group insurance 12,006
$667,000

Tax rates assumed:

  • Social security 6% State unemployment (employer only)5.4%
  • Medicare1.5% Federal unemployment (employer only)0.8%

Problem 1: Assuming that the payroll for the last week of the year is to be paid on December 31, How do you Journalize the following entries???

a. December 30, to record the payroll.
b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $32,000 is subject to unemployment compensation taxes.

Problem 2: Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year,  How do you Journalize the following entries???

a. On page 11 of the journal: December 30, to record the payroll.
b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $667,000 in salaries is subject to unemployment compensation taxes.

Reference no: EM132684950

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