Question

Exercise 11.2 Recording deposit of social security, Medicare, and income taxes. LO 11-3 Aer Beam Corporation padits employees only 15, 2012 and recorded the corporation share of part s for the pyl paid that date, the firm's general ledger showed a balance of $19000 in the Social Security Tax Payable account a balance of $4.161 in the Medicare Tax Payable account, and a balance of $176 in the Employee Income Tax Payable account Only the business Issued a check to deposit the taxes owed in the First Texas Rank Record this transaction in general journal form View transactions Journal entry worksheet

Answer 1

Either company can pass individual entries in its books as on July 16th. Amt In dollars

1)Social security tax payableA/c.........Dr 19000

To First Texas Bank....... Cr 19000

(Being social security tax paid)

2)Medicare Tax Payable A/c........ Dr 4161

To First Texas Bank........ Cr. 4161

(Being medicaremedicare tax paid)

3)Employee Income Tax payableA/c Dr 17560

To First Texas Bank ......... Cr . 17560

(Being employee income tax paid)

Or

They can pass a combined entry in dollars

Social security tax payableA/c . Dr 19000

Medicare Tax Payable A/c. Dr. 4161

Employee Income tax payable . Dr 17560

To First Texas bank. Cr 40721

(Being taxes due paid)

All these payable accounts comes under current liabilities in the balance sheet and when tax is paid the liability decreases