Preparation of Journal entries for payroll accounting.
Gross pay for the employees of Mr. Scott Corporation for February 28, 2008 is as follows:
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Sales Salaries
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$338,000
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Office Salaries
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148,000
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Maintenance Salaries
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95,000
|
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Total Salaries
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$581,000
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Information on withholding and payroll taxes are shown below:
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1.
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Federal Income tax withheld
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$72,625
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2.
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Stale income tax withheld
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17,100
|
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3.
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Health insurance withheld
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8,200
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|
4.
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Pension contributions withheld
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25,125
|
|
5.
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FICA rate is 7.7%
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|
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6.
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SUTA tax is $98,000 and FUTA taxes are $2,215
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Required:
(A.) Make the journal entry to record the February payroll
(B.) Record the journal entry for the employer's payroll taxes
(C.) Make the journal entry to record the employer's monthly payment of payroll tax liabilities