Question

Journalize the entry for Hot Rod Service using the following data from the payroll register:

Regular earnings $16,370
Overtime earnings 903
Federal income tax withheld 2,268
Social Security tax withheld 827
Medicare tax withheld 194
Pension contribution from employees 711
Health insurance premiums 807

If an amount box does not require an entry, leave it blank.

Date Description Post Ref. Debit Credit

Answer 1

Answer: See explanation

Step-by-step explanation:

Debit: Wages and Salaries Expense = $17,273

Credit: Employee Income tax payable = $2,268

Credit: Social Security tax payable = $827

Credit: Medicare tax payable = $194

Credit: Pension plan deduction payable = $711

Credit: Health Insurance premium payable = $807

Credit: Cash (Balancing Figure) = $12,466

Note that wages and salaries expense was calculated as:

= Regular earnings + Overtime earnings

= $16,370 + $903

= $17,273