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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current
week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social
security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the
first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entry to record the salaries expense.
Do not include dollar signs in the entry. Please round all numerical answers to the nearest cent. For example, 711.267 would be answered
as "711.27". Use the following chart of accounts to ensure that accounts names are spelled correctly.
11
12
13
14
15
17
18
19
21
22
23
24
25
26
27
28
31
32
Cash
Assets
Accounts receivable
Allowance for doubtful accounts
Supplies
Prepaid insurance
Land
Equipment
Accumulated depreciation-equipment
Liabilities
Accounts payable
Salaries payable
Notes payable
Social security taxes payable
Medicare taxes payable
Federal withholding taxes payable
SUTA payable
FUTA payable
Owner's Equity
Retained earnings
Common stock

Transcribed Image Text:41
51
52
53
54
Revenues
Fees earned
Expenses
Rent expense
Salary expense
Payroll tax expense
Interest expense
Type account names completely and exactly as typed above. No abbreviations. Do not use commas or $ in your numbers. If there is more than one debit or more
than one credit, please enter amounts in descending order.
Expert Solution
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Step 1
ANSWER:-
JOURNAL ENTRIES
Date | Description | Post Ref. | Debit($) | Credit($) |
December 31 | Salary Expense | 735.00 | ||
Federal Withholding Taxes Payable | 120.00 | |||
Social Security Taxes Payable | 44.10 | |||
Medicare Taxes Payable | 11.03 | |||
Salaries Payable | 559.87 | |||
December 31 | Payroll Tax Expense | 86.00 | ||
Social Security Taxes Payable | 44.10 | |||
Medicare Taxes Payable | 11.03 | |||
State Unemployment Comp. Taxes Payable | 24.99 | |||
Federal Unemployment Comp. Taxes Payable | 5.88 |
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