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Question - For the most recent two-week pay period, Company V had a single employee: Victor Vim. Victor's salary for the period was $1,600. Federal Income Tax withholding for the period is $275; state withholding is $52. Social Security and Medicare are withheld at 6.2% and 1.45% respectively. Victor's earnings for the year to date are $20,000. Victor has also authorized V to withhold a retirement contribution of $100 per pay period and a charitable contribution of $30.
Required -
Use tab "P 5" to prepare the journal entry to record the payroll expense for this period. This entry should include Victor's net pay.
Prepare the journal entry to record the payroll taxes for this period. Company V has made all the unemployment tax payments it is required to make for this year.
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