Reference no: EM132472417

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

Salaries:

Sales salaries                       $282,000

Warehouse salaries                155,000

Office salaries                      144,000

                                       $581,000

Deductions:

Income tax withheld               $102,256

Social security tax withheld        34,860

Medicare tax withheld8,715      $581,000

Retirement savings                     12,782

Group insurance                         10,458

                                            $169,071

Tax rates assumed:

Social security,                                   6%

Medicare,                                         1.5%

State unemployment (employer only),     5.4%

Federal unemployment (employer only),   0.6%

Required:

If an amount box does not require an entry, leave it blank.

Question 1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll.

Question 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $29,000 is subject to unemployment compensation taxes.

Question 2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30 to record the payroll.

Question 2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $581,000 in salaries is subject to unemployment compensation taxes.