A company's payroll information for the month of May follows: Administrative salaries …….…….…….…….……$4,000Sales salaries…….…….…….…….…….…….…5,500FICA-Social Security taxes withheld…….…….…589FICA-Medicare taxes withheld…….…….…….…138Federal income taxes withheld…….…….…….…1,300Medical insurance premiums withheld…….…….415Union dues withheld…….…….…….…….…….205On May 31 the company issued Check No. 4625 payable to the Payroll Bank Account to pay for the May payroll. It issued payroll checks to the employees after depositing the check.The federal and state unemployment tax rates are 0.6% and 5.4%, respectively, on the first $7,000 paid to each employee. The portion of May wages and
salaries subject to these taxes were $6,000. (1) Prepare the journal entry to record (accrue) the employer's payroll for May. (2) Prepare the journal entry to record payment of the May payroll. (3) Prepare the journal entry to record the employer's payroll taxes.
What will be an ideal response?
| May | 31 | Administrative Salaries Expense | 4,000 | ? |
| ? | ? | Sales Salaries Expense | 5,500 | ? |
| ? | ? | FICA-Social Security Taxes Payable | ? | 589 |
| ? | ? | FICA-Medicare Taxes Payable | ? | 138 |
| ? | ? | Employee Federal Income Taxes Payable | ? | 1,300 |
| ? | ? | Employee Medical Insurance Payable | ? | 415 |
| ? | ? | Employee Union Dues Payable | ? | 205 |
| ? | ? | Salaries Payable | ? | 6,853 |
| ? | ? | ? | ? | ? |
| ? | 31 | Salaries Payable | 6,853 | ? |
| ? | ? | Cash | ? | 6,853 |
| ? | ? | ? | ? | ? |
| ? | 31 | Payroll Taxes Expense | 1,087 | ? |
| ? | ? | FICA-Social Security Taxes Payable | ? | 589 |
| ? | ? | FICA-Medicare Taxes Payable | ? | 138 |
| ? | ? | Federal Unemployment Taxes Payable* | ? | 36 |
| ? | ? | State Unemployment Taxes Payable* | ? | 324 |
*$6,000 * 0.006 = $36.
*$6,000 * 0.054 = $324.
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