Answer:
a. May 18
Dr Salaries expense $615000
Cr Social security tax payable $36900
Cr Medicare tax payable $9225
Cr Employment federal income tax payable $165000
Cr Salaries payable $403875
b. May 18
Dr Payroll tax expenses $48915
Cr Social security tax payable $36900
Cr Medicare tax payable $9225
Cr State unemployment taxes payable $2430
Cr Federal unemployment taxes payable $360
Explanation:
a. Preparation of the journal entry to record the payroll for the week of May 18.
May 18
Dr Salaries expense $615000
Cr Social security tax payable $36900
(615000*6%)
Cr Medicare tax payable $9225
(615000*1.5%)
Cr Employment federal income tax payable $165000
Cr Salaries payable $403875
($615000-$36900-$9225-$165000)
(To record the payroll for the week of May 18)
b. Preparation of the journal entry to record the payroll tax expense incurred for the week of May 18.
May 18
Dr Payroll tax expenses $48915
($36,900+$9225+$2430+$360)
Cr Social security tax payable $36,900 (615000*6%)
Cr Medicare tax payable $9225
(615000*1.5%)
Cr State unemployment taxes payable $2430 (45000*5.4%)
Cr Federal unemployment taxes payable $360 (45000*0.8%)
(To record the payroll tax expense incurred for the week of May 18)
