The following information about the payroll for the week ended December 30 was obtained from the records of Arnsparger Equipment Co.:

Instructions:

1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries:

(a) December 30, to record the payroll.

(b) December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $25,000 is subject to unemployment compensation taxes.

2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries:

(a) December 30, to record the payroll.

(b) January 5, to record the employer’s payroll taxes on the payroll to be paid on January 5.

Salaries: Deductions: $ 88,704 Income tax withheld Social security tax withheld Medicare tax withheld Sales salaries $244,000 135,000 Warehouse salaries 27,216 7,560 11,088 9,072 $143,640 Office salaries 125,000 $504,000 U.S. savings bonds Group insurance Tax rates assumed: Social security, 6% on first $100,000 of employee annual earnings Medicare, 1.5% State unemployment (employer only), 4.2% Federal unemployment (employer only), 0.8%