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Entries for payroll and payroll taxes

The following information about the weekly payroll was obtained from the records of Saine Co.:

Line Item Description	Amount
Salaries:
Sales salaries	$315,000
Warehouse salaries	173,000
Office salaries	161,000
Total	$649,000
Deductions:
Income tax withheld	$114,224
U.S. savings bonds	14,278
Group insurance	11,682

Tax rates assumed:

Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8%

Required:

If an amount box does not require an entry, leave it blank.

1a. Assuming that the payroll related to the first full week of the year and was paid on January 11, journalize the entry on January 11, to record the payroll.

Date	Account	Debit	Credit
Jan. 11	CashEmployees Income Tax ExpenseMedicare Tax PayableSales Salaries ExpenseSales Salaries Payable
	CashMedicare Tax PayableSocial Security Tax PayableWarehouse Salaries ExpenseWarehouse Salaries Payable
	CashEmployees Income Tax ExpenseOffice Salaries ExpenseOffice Salaries PayableU.S. Savings Bond Deductions Payable
	CashEmployees Income Tax ExpenseEmployees Income Tax PayableOffice Salaries ExpenseWarehouse Salaries Expense
	CashSales Salaries ExpenseSocial Security Tax ExpenseSocial Security Tax PayableWarehouse Salaries Expense
	CashMedicare Tax ExpenseMedicare Tax PayableOffice Salaries ExpenseSales Salaries Expense
	Bond Deductions ExpenseCashOffice Salaries ExpenseU.S. Savings Bond Deductions PayableWarehouse Salaries Expense
	Accounts PayableGroup Insurance ExpenseGroup Insurance PayableOffice Salaries ExpenseSales Salaries Expense
	Accounts ReceivableCashSalaries PayableSales Salaries ExpenseWarehouse Salaries Expense

1b. Assuming that the payroll related to the first full week of the year and was paid on January 11, journalize the entry on January 11, to record the employer's payroll taxes on the payroll to be paid on January 11. Because it is a new fiscal year, all $649,000 in salaries is subject to unemployment compensation taxes.

Date	Account	Debit	Credit
Jan. 11	Federal Unemployment Tax PayableMedicare Tax PayablePayroll Tax ExpenseSalaries ExpenseSocial Security Tax Payable
	Accounts PayableFederal Unemployment Tax ExpensePayroll Tax ExpensePayroll Tax PayableSocial Security Tax Payable
	CashMedicare Tax ExpenseMedicare Tax PayablePayroll Tax ExpensePayroll Tax Payable
	CashOffice Salaries ExpenseSalaries PayableState Unemployment Tax ExpenseState Unemployment Tax Payable
	CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableSalaries PayableWarehouse Salaries Expense

2a. Assuming that the payroll related to the last week of the year and was paid on December 31, journalize the entry on December 31, to record the payroll.

Date	Account	Debit	Credit
Dec. 31	CashEmployees Income Tax ExpenseMedicare Tax PayableSales Salaries ExpenseSales Salaries Payable
	CashMedicare Tax PayableSocial Security Tax PayableWarehouse Salaries ExpenseWarehouse Salaries Payable
	CashEmployees Income Tax ExpenseOffice Salaries ExpenseOffice Salaries PayableU.S. Savings Bond Deductions Payable
	CashEmployees Income Tax ExpenseEmployees Income Tax PayableOffice Salaries ExpenseWarehouse Salaries Expense
	CashSales Salaries ExpenseSocial Security Tax ExpenseSocial Security Tax PayableWarehouse Salaries Expense
	CashMedicare Tax ExpenseMedicare Tax PayableOffice Salaries ExpenseSales Salaries Expense
	Bond Deductions ExpenseCashOffice Salaries ExpenseU.S. Savings Bond Deductions PayableWarehouse Salaries Expense
	Accounts PayableGroup Insurance ExpenseGroup Insurance PayableOffice Salaries ExpenseSales Salaries Expense
	Accounts ReceivableCashSalaries PayableSales Salaries ExpenseWarehouse Salaries Expense

2b. Assuming that the payroll related to the last week of the year and was paid on December 31, journalize the entry on December 31, to record the employers payroll taxes on the payroll for the last week of the year. Of the total payroll for the last week of the year, $32,000 is subject to unemployment compensation taxes.

Date	Account	Debit	Credit
Dec. 31	Federal Unemployment Tax PayableMedicare Tax PayablePayroll Tax ExpenseSalaries ExpenseSocial Security Tax Payable
	Accounts PayableFederal Unemployment Tax ExpensePayroll Tax ExpensePayroll Tax PayableSocial Security Tax Payable
	CashMedicare Tax ExpenseMedicare Tax PayablePayroll Tax ExpensePayroll Tax Payable
	CashOffice Salaries ExpenseSalaries PayableState Unemployment Tax ExpenseState Unemployment Tax Payable
	CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableSalaries PayableWarehouse Salaries Expense

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