Question

the payroll register of chen heritage co. indicates $1,380 of social security withheld and $345 of medicare tax withheld on total salaries of $23,000 for the period. federal withholding for the period totaled $3,910. retirement savings withheld from employee paychecks were $2,600 for the period. provide the journal entry for the period's payroll.

Answer 1

The journal entry for the period's payroll would be recorded by debiting Salaries Expense and crediting various payable accounts for federal withholding, social security, medicare, and retirement savings.

Step-by-step explanation:

The journal entry for the period's payroll would be as follows:

1. Debit Salaries Expense: $23,000
2. Credit Federal Withholding Payable: $3,910
3. Credit Social Security Payable: $1,380
4. Credit Medicare Payable: $345
5. Credit Retirement Savings Payable: $2,600

This journal entry records the expenses for salaries and the liabilities for federal withholding tax, social security tax, medicare tax, and retirement savings withheld from employee paychecks.

Payroll journal entries refer to an accounting method of recording the wages or compensation managers pay their team members at a small or mid-sized business. An accountant records these entries into their general ledger for the company and uses payroll journal entries to document payroll expenses.

A journal entry to a payroll clearing account is a journal entry that summarizes the total expenses that are included in all net payroll checks. In other words, this is an entry that helps you determine exactly how much you are paying out in payroll in a given period.