Reference no: EM132472406

Urban Window Company had gross wages of $309,000 during the week ended July 15. The amount of wages subject to social security tax was $278,100, while the amount of wages subject to federal and state unemployment taxes was $39,000.

Tax rates are as follows:

Social security              6.0%

Medicare                     1.5%

State unemployment     5.4%

Federal unemployment    0.6%

1. The total amount withheld from employee wages for federal taxes was $61,800.
2. For a compound transaction, if an amount box does not require an entry, leave it blank.

Question a. Journalize the entry to record the payroll for the week of July 15.

• Wages Expense
• Social Security Tax Payable
• Medicare Tax Payable
• Employees Federal Income Tax Payable
• Wages Payable

Question b. Journalize the entry to record the payroll tax expense incurred for the week of July 15.

• Payroll Tax Expense
• Social Security Tax Payable
• Medicare Tax Payable
• State Unemployment Tax Payable
• Federal Unemployment Tax Payable