Question

The payroll register for Gamble Company for the week ended April 29 indicated the following:

Answer 1

Answer and Explanation:

The journal entries are shown below:

1. Salaries expense Dr $1,560,000

          To Social security tax payable  $93,600

          To Medicare tax payable $23,400

          To Federal income tax withheld payable $312,000

          To Salaries payable $1,131,000

(Being the payroll is recorded)

For recording this we debited the salary expense as it increased the expenses and credited all payable as it also increased the liabilities

2. Payroll tax expense Dr $132,600

          To Social security tax payable  $93,600

          To Medicare tax payable $23,400

          To State unemployment tax payable ($260,000 × 5.4%) $14,040

          To Federal unemployment tax payable ($260,000 × 0.6%) $1,560

(being the payroll tax expense is recorded)

For recording this we debited the payroll expense as it increased the expenses and credited all payable as it also increased the liabilities