Asked by Linda MyPhuong on May 28, 2024
Verified
Hair Affairs reports the following payroll information for May, 2010:
Type of Gross Federal Income Savings Bonds Salary Pay Tax Withheld Withheld Sales $10,000$2,200$200 Office 3,000600300$13,000$2,800$500\begin{array}{llll}\text { Type of } & \text { Gross } & \text { Federal Income } & \text { Savings Bonds } \\\text { Salary } & \text { Pay } & \text { Tax Withheld } & \text { Withheld }\\ \text { Sales } & \$ 10,000 &\$ 2,200 & \$ 200 \\\text { Office } & 3,000&600 & 300\\&\$13,000&\$2,800&\$500\end{array} Type of Salary Sales Office Gross Pay $10,0003,000$13,000 Federal Income Tax Withheld $2,200600$2,800 Savings Bonds Withheld $200300$500 Tax rate information follows:
FICA 7.0%Federal unemployment 0.8%State employment 5.4%\begin{array}{llr} \text { FICA } &7.0\%\\ \text {Federal unemployment } &0.8\%\\ \text {State employment } &5.4\%\end{array} FICA Federal unemployment State employment 7.0%0.8%5.4%
Assume that all wages are subject to all payroll taxes.
Required:
Prepare the journal entries to record the payment of the May, 2010, payroll and the payroll taxes imposed on the employer.
Payroll Taxes
Charges levied on both employers and employees, typically determined based on a percentage of what employers pay to their workers as wages.
Federal Income
Income subject to federal income tax, which includes earnings from various sources such as wages, interest, dividends, and capital gains, among others.
- Analyze and prepare journal entries for payroll and payroll taxes.
Verified Answer
DO
Doris OatesMay 30, 2024
Final Answer :
Sales Salaries Expense 10,000 Office Salaries Expense 3,000 FICA Taxes Payable 910 Employee Federal Income Taxes Withholding Payable 2,800 Savings Bonds Withholding Payable 500 Cash 8,790 Payroll Taxes Expense 1,716 FICA Taxes Payable 910 Federal Unemployment Taxes Payable 104 State Unemployment Taxes Payable 702\begin{array} { l l l } \text { Sales Salaries Expense } & 10,000 & \\\text { Office Salaries Expense } & 3,000 \\& \text { FICA Taxes Payable } & 910 \\& \text { Employee Federal Income Taxes Withholding Payable }& 2,800 \\& \text { Savings Bonds Withholding Payable }& 500 \\& \text { Cash } & 8,790 \\\\\text { Payroll Taxes Expense } & 1,716 & \\& \text { FICA Taxes Payable } &910 \\& \text { Federal Unemployment Taxes Payable } &104 \\&\text { State Unemployment Taxes Payable }&702\end{array} Sales Salaries Expense Office Salaries Expense Payroll Taxes Expense 10,0003,000 FICA Taxes Payable Employee Federal Income Taxes Withholding Payable Savings Bonds Withholding Payable Cash 1,716 FICA Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable 9102,8005008,790910104702
Learning Objectives
- Analyze and prepare journal entries for payroll and payroll taxes.