For the year ended December 31, 2017, Denkinger Electrical Repair Company report

Question

For the year ended December 31, 2017, Denkinger Electrical Repair Company reports the following summary payroll data Gross earnings $214,000 362,000 $576,000 Administrative salaries Electricians' wages Total Deductions: FICA taxes Federal income taxes withheld State income taxes withheld (3%) United Fund contributions payable Health insurance premiums $38,639 187,500 17,280 27,789 19,500 $290,708 Total Denkinger Company's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $488,500, and gross earnings subject to unemployment taxes total $149,500 (a) Prepare a summary journal entry at December 31 for the full year's payroll (b) Journalize the adjusting entry at December 31 to record the employer's payroll taxes

Explanation / Answer

b Payroll tax expense 43573         FICA taxes payable 38639         State unemployment taxes payable 3738         Federal unemployment taxes payable 1196

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