Question

Giblin’s Goodies pays employees weekly on Fridays. However, the company notices that October 31 is a Thursday and the pay period will end on November 1. The payroll data for October 28–October 31 is as follows:

Gross pay: $4,500.00
Federal income tax: $520.00
Social Security tax: $279.00
Medicare tax: $65.25
State income tax: $90.00
Required: Give the adjusting entry in the General Journal to recognize the employee and employer share of the payroll for October 28-31. Date the entry October 31. Then give the journal entry to reverse the adjustment on November 1, 2019.

Answer 1

Below is the Journal entry to record Giblin's Goodies Adjusting entry and Reversing entry to follow:

Step-by-step explanation:

Date: October 31

Debit: Salaries and Wages Expense $4,500

Credit: Salaries and Wages Payable $3,545.75

Credit: Federal income tax Payable $520.00

Credit: Social Security tax Payable $279.00

Credit: Medicare tax Payable $65.25

Credit: State income tax Payable $90.00

To record Salaries and Wages Payable.

Date: November 1

Debit: Salaries and Wages Payable $3,545.75

Credit: Cash $3,545.75

To record payment of Salaries and Wages.