The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries:
Sales salaries $625,000
Warehouse salaries 240,000
Office salaries 320,000
$1,185,000
Deductions:
Income tax withheld $232,260
Social security tax withheld 71,100
Medicare tax withheld 17,775
U.S. savings bonds 35,500
Group insurance 53,325
$409,960
Tax rates assumed:
Social security 6%
Medicare 1.5%
State unemployment (employer only) 5.4%
Federal unemployment (employer only) 0.8%
Required:
1. Assuming that the payroll for the last week of the year is to be paid on December 31, 2015, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
A. December 30, 2015, to record the payroll. Include the year when entering the date in the journal.
B. December 30, 2015, 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, $30,000 is subject to unemployment compensation taxes. Include the year when entering the date in the journal.