Exercise 13-7

Buffalo Hardware Companys payroll for November 2017 is summarized below.

					Amount Subject to Payroll Taxes
						Unemployment Tax
Payroll		Wages Due		FICA		Federal		State
Factory		$121,100		$121,100		$39,800		$39,800
Sales		35,100		35,100		3,600		3,600
Administrative		39,400		39,400
Total		$195,600		$195,600		$43,400		$43,400

At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employees wages to $118,500 and 1.45% in excess of $118,500. Of the $195,600 wages subject to FICA tax, $19,700 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,400 for factory, $6,600 for sales, and $5,500 for administrative.

Prepare a schedule showing the employers total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.)

		Factory		Sales		Administrative		Total
Salaries and Wages		$		$		$		$
FICA Taxes
FUTA Taxes
SUTA Taxes
Total Cost		$		$		$		$

Show List of Accounts

Prepare the journal entries to record the factory, sales, and administrative payrolls including the employers payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.)

Account Titles and Explanation	Debit	Credit
Factory Payroll:
(To record salaries and wages expense.)
(To record payroll tax expense.)
Sales Payroll:
(To record salaries and wages expense.)
(To record payroll tax expense.)
Administrative Payroll:
(To record salaries and wages expense.)
(To record payroll tax expense.)