Page 69 - Account for Ag - 2019

CH 10] Payroll Accounting & Payroll Taxes 10-17

state unemployment (employer only), 3.4%; and federal unemployment, 2.8%.

INSTRUCTIONS: 1) Prepare a payroll record similar to that in illustration 10-4 of the textbook. 2) Journalize the entry to
record the payroll for the week. 3) The company uses checks issued against a payroll bank account. Give the entries in general
journal form to record the payroll and the payment of the payroll. The payroll checks are issued in the order of the names on the
payroll, beginning with check number 493. 4) Journalize the entry to record the employer's payroll taxes for the week.

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10-2. The following information relative to the payroll of Superior Fertilizer Co. for the week ending December 30 of the
current year appears on the payroll record and other records:

Salaries: Deductions:
Sales Salaries .................... $23,900 Income tax withheld ................ $ 3,960
Office Salaries ................... 7,200 Bond deductions ...................... 700
Warehouse Salaries........... 4,100 Hospital deductions ................. 300
$35,200 FICA Tax Withheld is Assumed to total
the same amount as the employers Tax.

INSTRUCTIONS: 1) Assuming that the payroll for the last week of the year is to be paid on December 31, present the
following entries: a) December 30, to record the payroll. Of the total payroll for the last week of the year $7,800 is subject to
the FICA tax and $2,310 is subject to unemployment compensation taxes. b) December 30, to record the employer's payroll
taxes on the payroll to be paid on December 31. 2) Assuming that the payroll for the last week of the year is to be paid on
January 2 of the following fiscal year, present the following entries: a) December 31, to record the payroll. b) January 2, to
record the employer's payroll taxes on the payroll to be paid on January 2.

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