ACME pays salaries monthly on the last day of the month. The following information...
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Accounting
ACME pays salaries monthly on the last day of the month.
The following information is available from Electronics for the month ended December 31, Year 1.
Administrative salaries $ 77,000
Sales salaries 67,000
Office salaries 49,000
Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries. Duke reached $110,000 before September. His salary in December amounted to $11,000 and is included in the $77,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December.
Assume the Medicare tax rate is 1.5% of total salaries.
Other amounts withheld from salaries in December were as follows:
Federal income tax $ 18,000
State income tax 6,400
Employee savings plan 3,200
A. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1.
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