AB 116 WEEK 4 Problem 11 5A
Your answer is correct.
For the year ended December 31 2014 Denkinger Electrical Repair Company reports the following summary payroll data.
Gross earnings:
Administrative salaries $215,000
Electricians’ wages 351,000
Total $566,000
Deductions:
FICA taxes $38,215
Federal income taxes withheld 183,000
State income taxes withheld (3%) 14,716
United Fund contributions payable 28,300
Health insurance premiums 17,200
Total $281,431
Denkinger Company- payroll taxes are Social Security tax 6.2%,Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $484,000, and gross earnings subject to unemployment taxes total $146,000.
(a) Prepare a summary journal entry at December 31 for the full year- payroll.
(b) Journalize the adjusting entry at December 31 to record the employer- payroll taxes.
(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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