High School

The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.:

**Salaries:**
- Sales salaries: $223,000
- Warehouse salaries: $123,000
- Office salaries: $114,000
**Total Salaries:** $460,000

**Deductions:**
- Income tax withheld: $80,960
- U.S. savings bonds: $10,120
- Group insurance: $8,280

**Tax Rates Assumed:**
- Social security: 6%
- Medicare: 1.5%
- State unemployment (employer only): 5.4%
- Federal unemployment (employer only): 0.8%

**Required:**
1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll.

*Note: If an amount box does not require an entry, leave it blank.*

Answer :

The journal entry on December 30 to record the payroll for the last week of the year would be with Salaries Expense $460,000 and Social Security Taxes Payable-$13,800

Rest of the journal entries:

Medicare Taxes Payable $6,900

State Unemployment Taxes Payable $24,840

Federal Unemployment Taxes Payable $3,680

U.S. Savings Bonds Payable $10,120

Income Tax Payable $80,960

Group Insurance Payable $8,280

Cash $311,420

The debit to Salaries Expense represents the total amount of salaries earned by employees during the week. The credits to Social Security Taxes Payable and Medicare Taxes Payable represent the employer's share of payroll taxes for those programs, while the credits to State Unemployment Taxes Payable and Federal Unemployment Taxes Payable represent the employer's share of those taxes. The credit to U.S. Savings Bonds Payable represents the amount of savings bonds purchased by employees through payroll deduction, while the credit to Income Tax Payable represents the amount of federal income tax withheld from employees' paychecks.

The credit to Group Insurance Payable represents the amount of employee contributions to the company's group insurance plan. Finally, the credit to Cash represents the amount paid to employees in net pay after all deductions have been taken out.

Learn more about insurance here:

https://brainly.com/question/989296

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