ACME pays salaries monthly on the last day of the month. The following information is...
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Accounting
ACME pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1.
Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries. Duke reached $110,000 before September. His salary in December amounted to $11,000 and is included in the $77,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December.
Assume the Medicare tax rate is 1.5% of total salaries. Other amounts withheld from salaries in December were as follows:
Federal income tax $ 18,000State income tax 6,400Employee savings plan 3,200a. Prepare the journal entry to record the payment of payroll on December 31, Year 1.b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company forDecember Year 1.
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