The payroll register for Jaffrey Company for the week ended May 16 indicated the following:

The payroll register for Jaffrey Company for the week ended May 16 indicated the following:









Salaries $1,250,000
Social security tax withheld 58,750
Medicare tax withheld 18,750
Federal income tax withheld 250,000




In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $225,000 of salaries.
a. Journalize the entry to record the payroll for the week of May 16.
b. Journalize the entry to record the payroll tax expense incurred for the week of May 16.


Answer:

















a.
 Salaries Expense 1,250,000
Social Security Tax Payable 58,750
Medicare Tax Payable 18,750
Employees Federal Income Tax Payable 250,000
Salaries Payable 922,500
b.
 Payroll Tax Expense 91,450
Social Security Tax Payable 58,750
Medicare Tax Payable 18,750
State Unemployment Tax Payable* 12,150
Federal Unemployment Tax Payable** 1,800
* 5.4% × $225,000
** 0.8% × $225,000