Question

Paul Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries and wages earned by employees $ 212,000 Employee income taxes withheld 42,400 Employee government insurance premiums withheld 4,000 FICA payroll taxes* 16,900 *Assessed on both employer and employee (i.e., $16,900 each). Required: 1. Prepare the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Paul has yet to transfer any withholdings to the government. 2. Prepare the journal entry to record the employer's payroll taxes, which have not yet been paid to the government. 3. Provide a combined journal entry to show the payment of all amounts owed to governmental agencies. (For all requirements, If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

wages expense 212,000 debit

Income tax payroll payable 42,400 credit

FICA payable 16,900 credit

insurnace premium payable 4,000 credit

wages payable 148,700 credit

--to record wages to employees--

payroll tax expense 19,400 debit

FICA payable 19,400 credit

--to record employeed payroll taxes--

Income tax payroll payable 42,400 debit

FICA payable 33,800 debit

insurnace premium payable 4,000 debit

Cash 80,200 credit

--to record payment to gevernment agencies--

Step-by-step explanation:

We have to deduct from the wages the employee deductions

the remaining is the wages payable

Then, we record the same amount of fica as expense as we, the employer are paying them

Then we debit all the liaiblities which arise from the employees and credit cash for the total amount