For the year ended December 31, 2022, Denkinger Electrical Repair Company reports the following summary payroll data.Gross

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For the year ended December 31, 2022, Denkinger Electrical Repair Company reports the following summary payroll data.Gross earnings:Administrative salaries ..................$200,000Electricians? wages ...........................370,000Total .................................................$570,000Deductions:FICA taxes ........................................$ 38,645Federal income taxes withheld .....174,400State income taxes withheld (3%)....17,100United Fund contributions payable .27,500Health insurance premiums ............17,200Total ................................................$274,845Denkinger Company?s payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $490,000, and gross earnings subject to unemployment taxes total $135,000. No employee exceeds the $127,200 limit related to FICA taxes.

Instructionsa. Prepare a summary journal entry at December 31 for the full year?s payroll.b. Journalize the adjusting entry at December 31 to record the employer?s payroll taxes.c. The W-2 Wage and Tax Statement requires the following dollar data.image

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Accounting Tools For Business Decision Making

ISBN: 9781119571056

7th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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