Widmer Company had gross wages of $310,000 during the week ended June 17. The amount of wages subject to social security tax was $310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $47,000. Journalize the entry to record the payroll for the week of June 17. * Refer to the Chart of Accounts for exact wording of account titles. Journalize the entry to record the payroll tax expense incurred for the week of June 17. Refer to the Chart of Accounts for exact wording of account titles.

Question

Susan Russell

Business

9 May, 03:41

Widmer Company had gross wages of $310,000 during the week ended June 17. The amount of wages subject to social security tax was $310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $47,000. Journalize the entry to record the payroll for the week of June 17. * Refer to the Chart of Accounts for exact wording of account titles. Journalize the entry to record the payroll tax expense incurred for the week of June 17. Refer to the Chart of Accounts for exact wording of account titles.

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Drake Conley · Answer 1

Answer and Explanation:

Widmer Company

Journal Entries

For the week of June 17

Debit Credit

Wages expense $310,000

FICA social security tax (6% x $310,000) $18,600

FICA medicare tax (1.5% x $310,000) $4,650

Federal income tax $47,000

Wages payable (balancing figure) $239,750

Recording of employee payroll.

Payroll tax expense $25,420

FICA social security tax payable $18,600

FICA medicare tax payable $4,650

FUTA payable (0.8% x $35,000) $280

SUTA payable (5.4% x $35,000) $1,890

Recording of payroll taxes