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Electronics Service Company 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 Sales salaries Office salaries Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries. Duke reached $110,000 before September. His alary in December amounted to $12,000 and is included in the $71,000. 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 $ 20,000 State income tax Employee savings plan 5,400 3,100 Required . Prepare the journal entry to record the payment of payroll on December 31, Year 1. . Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Date 12/31 $ 71,000 59,000 39,000 Record the entry for payment of payroll on December 31, Year 1. Note: Enter debits before credits. General Journal Administrative salaries expense Sales salaries expense Office salaries expense FICA tax payable-Social Security FICA tax payable-Medicare Employee federal income tax payable Employee state income tax payable Employee savings plan Cash Debit 71,000 59,000 39,000 Credit >

Electronics Service Company 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 Sales salaries Office salaries Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries. Duke reached $110,000 before September. His alary in December amounted to $12,000 and is included in the $71,000. 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 $ 20,000 State income tax Employee savings plan 5,400 3,100 Required . Prepare the journal entry to record the payment of payroll on December 31, Year 1. . Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Date 12/31 $ 71,000 59,000 39,000 Record the entry for payment of payroll on December 31, Year 1. Note: Enter debits before credits. General Journal Administrative salaries expense Sales salaries expense Office salaries expense FICA tax payable-Social Security FICA tax payable-Medicare Employee federal income tax payable Employee state income tax payable Employee savings plan Cash Debit 71,000 59,000 39,000 Credit >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Electronics Service Company 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 Sales salaries Office salaries 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 $12,000 and is included in the $71,000. 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 $ 20,000 State income tax 5,400 Employee savings plan 3,100 Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Date 12/31 2 Record the entry for payment of payroll on December 31, Year 1. Note: Enter debits before credits. General Journal Administrative salaries expense Sales salaries expense Office salaries expense $ 71,000 59,000 39,000 FICA tax payable-Social Security FICA tax payable-Medicare Employee federal income tax payable Employee state income tax payable Employee savings plan Cash Record entry Clear entry Debit 71,000 59,000 39,000 Credit View general journal >
Transcribed Image Text:Electronics Service Company 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 Sales salaries Office salaries 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 $12,000 and is included in the $71,000. 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 $ 20,000 State income tax 5,400 Employee savings plan 3,100 Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Date 12/31 2 Record the entry for payment of payroll on December 31, Year 1. Note: Enter debits before credits. General Journal Administrative salaries expense Sales salaries expense Office salaries expense $ 71,000 59,000 39,000 FICA tax payable-Social Security FICA tax payable-Medicare Employee federal income tax payable Employee state income tax payable Employee savings plan Cash Record entry Clear entry Debit 71,000 59,000 39,000 Credit View general journal >
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