Ledger State Withholding 401 W Withholding \begin{tabular}{|l|r|r|} \cline { 2 - 3 } \multicolumn{1}{c|}{} &...
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Ledger State Withholding 401 W Withholding \begin{tabular}{|l|r|r|} \cline { 2 - 3 } \multicolumn{1}{c|}{} & Debit & Credit \\ \hline Cash & 10,000 & \\ \hline Sales tax Payable & & 0 \\ \hline Federal W/H & & 0 \\ \hline Soc Sec W/H & & 0 \\ \hline State W/H & & 0 \\ \hline 401KW/H & & 0 \\ \hline Capital & & 10,000 \\ \hline Sales & & 0 \\ \hline Wage Expense & 0 & \\ \hline & & \\ \hline \multicolumn{1}{|r|}{ Total } & 10,000 & 10,000 \\ \hline \end{tabular} 2 The company sends out checks to deposit the taxes/retirement withholdings To the IRS, for federal withholding \& Social Security ($75+$35=$110) To the Massachusetts Dept of Revenue for state taxes ($25) To the 401K plan for retirement savings ($50) Wage Expense recorded was $500 Cash disbursements by company =315+110+25+50=$500 3 A customer walks into the store and buys $100 worth of goods Assume the sales tax is 6% The customer pays $106 - the purchase price plus the sales tax (you may disegard the COGS side of the entry) 4 Once a month, the company sends all the sales tax collected to the state The company received $106; it pays out $6 to the state; net cash =$100
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