Question

I need help figuring out the ss payable, medicare, savings plan, and cash.

Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Administrative salaries Sales salaries office salaries $80,000 67.000 36,000 Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent on all salaries. Duke reached the $110,000 amount in September. His salary in December amounted to $15,000 and is included in the $80,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December Other amounts withheld from salaries in December were as follows: Federal income tax State income tax Employee savings plan $20,000 6,200 2,600 Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date Credit General Journal Administrative salaries expense 12/31 Debit 80,000 67.000 Sales salaris Axen

Answer 1

Journal Entry
a.	Date	General Journal	Debit	Credit
	31-Dec	Administrative salaries expense	$80,000.00
		Sales salaries expense	$67,000.00
		Office salaries expense	$36,000.00
		Social security tax payable [6.0% x ($183000 - $15000)]		$10,080.00
		Medicare tax payable (1.5% x $183000)		$2,745.00
		Federal income tax payable		$20,000.00
		State income tax payable		$6,200.00
		Employee savings plan payable		$2,600.00
		Cash (BF)		$141,375.00