For the year ended December 31, 2014, Denkinger 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 ..................$ 38,645

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 ..................................................$274,845

Denkinger 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 0.8% 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.

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.

Complete the required data for the followingemployees.

Transcribed Image Text:

EmployeeGross Earnings Maria Sandoval Jennifer Mingenback $59,000 26,000 Federal Income Tax Withheld $28,500 10,200