Question

During the month of March, Munster Company's employees earned wages of $64,000. Withholdings related to these wages were $4,896 for FICA, $7,500 for federal income tax, $3,100 for state income tax, and $400 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $700 for state unemployment tax. Journalize payroll entries.

Answer 1

A. Dr salaries and wages expense for 64,000

Cr to FICA taxes payable for 4,896

Cr Federal Income Tax Payable for 7,500

Cr State Income Tax Payable for 3,100

Cr Union Dues Payable for 400

Cr Salaries and Wages Payable for 48,104

B. Dr payroll tax expense for 5,596

Cr FICA tax payable for 4,896

Cr State Unemployment for 700

Step-by-step explanation:

Preparation to Journalize the payroll entries

A. Dr salaries and wages expense for 64,000

Cr to FICA taxes payable for 4,896

Cr Federal Income Tax Payable for 7,500

Cr State Income Tax Payable for 3,100

Cr Union Dues Payable for 400

Cr Salaries and Wages Payable for 48,104

(64,000-4,896-7,500-3,100-400)

B. Dr payroll tax expense for 5,596

(4,896+700)

Cr FICA tax payable for 4,896

Cr State Unemployment for 700