McLoyd Company completed the salary and wage payroll for March 2013. The payroll
ID: 2487305 • Letter: M
Question
McLoyd Company completed the salary and wage payroll for March 2013. The payroll provided the following details:
Considering employer payroll taxes, use the preceding information to calculate the total labor cost for the company.
2.Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes). Employees were paid in March but amounts withheld were not yet remitted. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
McLoyd Company completed the salary and wage payroll for March 2013. The payroll provided the following details:
Explanation / Answer
1)
Total labor cost = salaries and wages earned + FICA taxes + Unemployment taxes
= 420,000 + 30,030 +2,920
= 452,950
2)
Description
Debit
Credit
Salaries and wages expense
420000
Income taxes withheld
38850
FICA Taxes payable
30030
Cash
351120
3)
Description
Debit
Credit
Payroll tax expense
32950
Unemployment taxes payable
2920
FICA Taxes payable
30030
Description
Debit
Credit
Salaries and wages expense
420000
Income taxes withheld
38850
FICA Taxes payable
30030
Cash
351120