The following information about the payroll for the week ended December 30 was obtained from the records of Plumb Line Supply Co.:

Tax rates assumed:
Social security, 6% on first $100,000 of employee annual earnings
Medicare, 1.5%
State unemployment (employer only), 4.2%
Federal unemployment (employer only), 0.8%

Instructions
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries:
a. December 30, to record the payroll.
b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $15,000 is subject to unemployment compensation taxes.
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries:
a. December 30, to record the payroll.
b. January 5, to record the employer's payroll taxes on the payroll to be paid on January5.

Transcribed Image Text:

Salaries: Sales salaries Warehouse salaries Office salaries $162,400 54,200 83,400 $300,000 Income tax withheld Social security tax withheld Medicare tax withheld U.S. savings bonds Group insurance 52,800 16,200 4,500 6,500 5,600 85,600