A company's payroll information for the month of May follows: Administrative salaries $4,000...
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Accounting
A company's payroll information for the month of May follows:
Administrative salaries $4,000
Sales salaries 5,500
FICA-Social Security taxes withheld 589
FICA-Medicare taxes withheld 138
Federal income taxes withheld 1,300
Medical insurance premiums withheld 415
Union dues withheld 205
On May 31 the company issued Check No. 4625 payable to the Payroll Bank Account to pay for the May payroll. It issued payroll checks to the employees after depositing the check. (1) Prepare the journal entry to record (accrue) the employer's payroll for May. (2) Prepare the journal entry to record payment of the May payroll. The federal and state unemployment tax rates are 0.6% and 5.4%, respectively, on the first $7,000 paid to each employee. The wages and salaries subject to these taxes were $6,000. (3) Prepare the journal entry to record the employer's payroll taxes.
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