Question: During the year ended June 30 McGee Associates office employees

During the year ended June 30, McGee Associates’ office employees earned wages of $700,000. McGee withheld 30% of this amount for payments for various income and payroll taxes. In addition, McGee must pay 10% of gross wages for the employer’s share of various taxes. McGee has promised to contribute 4% of gross wages to a profit-sharing fund, which workers will share as they retire. Employees earned vacation pay estimated to be $14,000; estimated fringe benefits are 20% of that amount.
a. Prepare journal entries for these wage-related items.
b. What is total wage and salary expense?

Sale on SolutionInn
  • CreatedMarch 04, 2014
  • Files Included
Post your question