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The following information is obtained concerning the weekly payroll of AB Corporation which has two employees, Anderson and Buckingham.
AndersonBuckingham
Year-to-date pay$137,000$9,500
Hourly wage rate$120$20.
Hours worked6030
Federal Withholding Taxes$940$50
Medical Insurance Premiums$540$70
Union Dues$100$10
401 (k) Contribution Percentage5%5%
Additional Data:
1)Social Security is taxed at 6% of the first $140,000 of annual wages.
2) Medicare is taxed at 1.5% of all wages.
3) State Unemployment Insurance is taxed at 5% of the first $10,000 of annual wages.
4) Federal Unemployment Insurance is taxed at 1% of the first $10,000 0f annualwages.
5) AB Corporation matches 100% of all 401 (k) employee contributions.
Required:
Prepare the necessary journal entries relating to the weekly payroll for the AB Corporation.
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