Prepare the necessary journal entry to record the payroll

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Question - You have been asked to prepare the entry to record the payroll on February 15, 20X1. for Hotel Properties Inc. The gross wages are $8,000 for administrative salaries and $6,000 for sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employees. All wages are subject to these taxes. In addition to the taxes withheld, the employer has withheld $128 for the employees' contribution to a health insurance plan.

1. Prepare the necessary journal entry to record the payroll of Hotel Properties Inc, on February 15, 20X1.

2. Prepare the journal entry that would be made on the date the payroll was actually paid.

Reference no: EM133077912

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