For the year ended December 31, 2012, Telmarine Electrical Repair Company reports the following summary payroll data.
Question:
For the year ended December 31, 2012, Telmarine Electrical Repair Company reports the following summary payroll data.
Gross earnings:
Administrative salaries????.. ?$200,000
Electricians? wages?????? ?370,000
Total???????????.. ? $570,000
Deductions:
FICA taxes????????? ?$ 38,800
Federal income taxes withheld?. ?174,400
State income taxes withheld (3%).. ?17,100
United Fund contributions payable.. ?27,500
Health insurance premiums??.. ?17,200
Total???????????.. ?$275,000
Telmarine Company?s payroll taxes are: FICA 8%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to FICA taxes total $485,000, and gross earnings subject to unemployment taxes total $135,000.
Instructions
(a) 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.
Step by Step Answer:
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso