Reference no: EM133122751
Question - Recording Payroll and Payroll Taxes - The following data are taken from Stockton Wholesale Company's May payroll:
Administrative salaries $50,000
Sales salaries 51,000
Custodial salaries 7,000
Total payroll $108,000
Salaries subject to 1.45 percent Medicare tax $108,000
Salaries subject to 6.2 percent Social Security tax 85,000
Salaries subject to federal unemployment taxes 14,000
Salaries subject to state unemployment taxes 21,000
Federal income taxes withheld from all salaries 17,800
Assume that the company is subject to a two percent state unemployment tax (due to a favorable experience rating) and a 0.6 percent federal unemployment tax.
Required - Record the following in general journal form on May 31:
a. Accrual of the monthly payroll.
b. Payment of the net payroll.
c. Accrual of employer's payroll taxes. (Assume that the FICA matches the amount withheld.)
d. Payment of these payroll-related liabilities. (Assume that all are settled at the same time.)