Question

During the month of March, Munster Company's employees earned wages of $64,000. Withholding related to these wages were $4,896 for Social Security (FICA), $7,500 for federal income tax, $3,100 for state income tax, and $400 for union dues. The company also incurred $700 for state unemployment tax.a)Prepare the entry at March 3 1st to record salaries and wages expense and salaries and wages payable (payroll expense). Assumed wages earned during March will be paid in April.b) Prepare the entry to record the company's payroll tax expense.

Answer 1

A. Debit to salaries and wages expense for 64,000

Credit to FICA taxes payable for 4,896

Credit to Federal Income Tax Payable for 7,500

Credit to State Income Tax Payable for 3,100

Credit to Union Dues Payable for 400

Credit to Salaries and Wages Payable for 48,104

B. Debit to payroll tax expense for 5,596

Credit to FICA tax payable for 4,896

Credit to State Unemployment for 700