60.1K

Verified Solution

Link Copied!

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	$119,000
Warehouse salaries	196,000	U.S. savings bonds	14,344
Office salaries	131,000	Group insurance	11,736
	$652,000

Tax rates assumed:
Social security	6%	State unemployment (employer only)	5.4%
Medicare	1.5%	Federal unemployment (employer only)	0.8%

	Required:
1.	Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. b. December 30, to record the employers payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes.
2.	Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): On page 11 of the journal: December 30, to record the payroll. 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 $652,000 in salaries is subject to unemployment compensation taxes.

Answer & Explanation Solved by verified expert

See Answer