Problem #5 Current Liabilities

Sink, Inc. had several employees working for the company. The main product line was different types of Diapers that people used to cover their faces during any type of flu outbreak. The following information was provided to you regarding the most recent payroll:

Gross wages were $400,000

Medical Insurance was $35,000 in total with the employee paying 30% and the employer paying 70%.

Federal Income taxes were $40,000

State Income taxes were $25,000

Social Security withheld was $15,000 in total.

Medicare withheld was $7,000 in total

AP totaled $34,000 at this point in time.

The employees had a Christmas fund deducted from their pay. This was $5,000 in total

Federal Unemployment tax was .5% with a limit of $300,000

State Unemployment tax was 5.4% with a limit of $300,000

Required: Make the entries for the employee and employer portion of the payroll expenses.