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During the month of March, Blossom Company’s employees earned wages of $60,000. Withholdings related to these wages were $4,590 for Social Security (FICA), $7,031 for federal income tax, $2,906 for state income tax, and $375 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $656 for state unemployment tax.
1. Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April.
2. Prepare the entry to record the company’s payroll tax expense.

Respuesta :

Parrain

Answer:

1.

March 31,

DR Salaries and Wages Expense ....................$60,000  

CR FICA taxes payable ........................................................$4,590

CR Federal income tax payable .........................................$7,031

CR State income tax payable ..............................................$2,906

CR Union dues payable .......................................................$375

CR Salaries and Wages payable ..........................................$45,098

Working

Salaries and Wages payable = 60,000 - 4,590 - 7,031 - 2,906 - 375

= $45,098

2.

DR Payroll taxes payable ...................................$5,246  

FICA taxes payable .................................................................$4,590

State unemployment taxes payable ....................................$656

Working

Payroll taxes payable = 4,590 + 656

= $5,246

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