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

a. Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,800, all of which is taxable. The amount of federal income taxes withheld each month is $1,140. Journalize the payment of wages and record the payroll tax on November 29.

For a compound transaction, if an amount box does not require an entry, leave it blank. When required, round your answers to the nearest cent.

Date	Account	Debit	Credit
Nov 29	Wages Expense	8800
	??		??
	FICA Taxes Payable-HI		??
	??		??
	Cash		6,986.80
Nov 29	Payroll Taxes	673.2
	FICA Taxes Payable-OASDI		545.60
	FICA Taxes Payable-HI		127.60

B. Prior to posting the November 29 payroll transaction, FICA Taxes Payable-OASDI, FICA Taxes Payable-HI, and Employees FIT Payable had zero balances. Ruther must pay the FICA taxes and income taxes withheld on the November 29 payroll. Journalize the electronic transfer of the payroll taxes on December 16.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

Date	Account	Debit	Credit
Dec 16
	FICA Taxes Payable-HI
	Cash