Example 6-5

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:

	Debit	Credit
Wages Expense	24,762.70
FICA Taxes PayableOASDI		1,535.29
FICA Taxes PayableHI		359.06
FIT Payable		3,714.00
SIT Payable		55.25
Group Insurance Payments W/H		54.70
Cash		19,044.40

Example 6-7

The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):

	Debit	Credit
Payroll Taxes	2,785.81
FICA Taxes PayableOASDI		1,535.29
FICA Taxes PayableHI		359.06
FUTA Taxes Payable		148.58
SUTA Taxes Payable		742.88

Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,200 each week.

Additional tax information includes:
FICA taxOASDI		6.2% on first $128,400
FICA taxHI		1.45% on total pay
Federal income tax		$180.00 per pay
State income tax		22% of the federal income tax withholding
Federal unemployment tax		0.6% on first $7,000
State unemployment tax		0.05% on first $14,000
Additional payroll deductions include:
401(k) plan		3% per pay
Child support garnishment		$120 per pay
Health insurance premium		$90 per pay

Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $25,200). If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent. Account Debit Credit Payment of wages Wages Expense FICA Taxes Payable-OASDI V FICA Taxes Payable-HI Employees FIT Payable Employees SIT Payable Garnishment Expense X Taxes Payable X Health Insurance Premiums Payable FUTA Taxes Payable X Payroll taxes FUTA Taxes Expense X FICA Taxes Payable-OASDI FICA Taxes Payable-HIV