Payroll Entries The payroll register for the Puhl Company for the week ended January 15th showed the following: Wages $800,000 Federal Income Tax withheld 160,000 Roth IRA deductions 5,000 United Way deductions 1,200 Union dues deductions 850 All the wages were subject to FICA (6% social security and 1.5% medicare tax) In addition, $620,000 of the wages were subject to federal and state unemployment taxes The state unemployment rate is 5.4% and the federal unemployment rate is 0.8% Required: 1. Journalize the entry to record the payroll for the week of January 15th. (Select the account from the dropdown menu) Date Accounts and Explanations Debit Credit 2. Journalize the entry to record the payroll tax expense for the week of January 15th. (Select the account from the dropdown menu) Date Accounts and Explanations Debit Credit

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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Payroll Entries

The payroll register for the Puhl Company for the week ended January 15th showed the following:

Wages		$800,000
Federal Income Tax withheld		160,000
Roth IRA deductions		5,000
United Way deductions		1,200
Union dues deductions		850

All the wages were subject to FICA (6% social security and 1.5% medicare tax)
In addition, $620,000 of the wages were subject to federal and state unemployment taxes
The state unemployment rate is 5.4% and the federal unemployment rate is 0.8%

Required:
1. Journalize the entry to record the payroll for the week of January 15th. (Select the account from the dropdown menu)

Date	Accounts and Explanations	Debit	Credit











2. Journalize the entry to record the payroll tax expense for the week of January 15th. (Select the account from the dropdown menu)

Date	Accounts and Explanations	Debit	Credit

Expert Solution

Step 1

Introduction:

The wages are the expenses of the company. The federal income tax withheld, both IRA deductions, united way deductions, and union due deductions will reduce the wages payable to the employees of the company. After deducting all the tax deductions only the wages will be paid to the employees of the company.

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