Question

A company's employees had the following earnings records on June 30, the current payroll period: Employees Earnings Earnings this FICA FICA Income Med Net Pay FUTAI FUTA SUTA through Prior Pay Period SS Med Taxes Ins SUTA Pay Period W/H W/H W/H W/H Taxable Earnings D. Adams $11,300 $3,900 $900 J. Hess 6,100 2,500 500 R. Lui 9,500 3,100 600 T. Morales 4,800 1,400 300 L. Vang 10,000 3,000 600 Totals The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $132,900 of earnings plus 1.45% FICA Medicare on all wages; 0.6% federal unemployment taxes (FUTA) on the first $7,000; and 5.4% state unemployment taxes (SUTA) on the first $7,000. Each employee is covered by medical insurance. $50 of the medical insurance premium is deducted from each employee and the company pays $100 of the medical insurance premium for each employee. Complete the table above, rounding to the nearest dollar for each calculation 1. Prepare the journal entry to record the payment of the payroll on June 30. 2. Prepare the journal entry to record employer's total payroll tax expense and medical insurance expense on June 30, the current pay period. Date Account Debit Credit Date Account Debit Credit

Answer 1

WH FUTA SUTA Earnings through Prior Pay Period $11,300.00 56,100.00 $9,500.00 54,800.00 $10,000.00 $41,700.00 Employees D. Adams JHess R. Lui T. Morales Vag. Totals 55.40 Earnings this Yearnings Til FICA US WH pay period (Y/N) $3,900.00 $15,200.00 Y 52,500.00 58,600.00Y S3,100.00 $12,600.00 Y $1,400.00 56,200.00 Y $3.000.000 $13.000.000 $13.900.00 $55 600 00|| FICA Med WWH 556.55 536.25 $44.95 $20.30 $48.60 FICS SS WH on June-30 5241.80 5155.00 5192.20 586.80 $186.00 S061 20 FUTA/SUTAFUTA/SUTA Taxable Taxable Net Pay Earings (YIN Earnings $2,651.65 NO 51,758.75 YES 5900.00 52.212.85 NO 5942.50 YES 52,200.00 52.120.50 NO $9 666 66 $3,100.00 Income Taxes Med ins WH 5900.00 550.00 5500.00 550.00 5600.00 $50.00 5300.00 550.00 5600.000 $50.00 $2 900 000 $250.00 Final Net Amount Payable 52,651.65 51,704.75 $2.212.85 $310.90 2 .120.50 $9500 G5 $13.20 ol 54350 $118.80 0 $16740 $201.55 $18.60 FICS SS WH 62% on first $132,900/- FICA Mad WH145% FCA madcare on all wages FUTA 0.6% on first $ 7.000- SUTA 54% on first $ 7.000L Medical Ing WH S 100,00 Med Ins premium 550.00 DATE Recording the payment of Pay rol as on 30th june ACCOUNT 30 June Net Wages Payable Cash CREDIT DEBIT 9500 65 9500.65 9500.65 950065 (Peng Wagas Pald as on 30th June 2 Employears Payroll tax axpanse medicalinance Expenses on une-30 DATE ACCOUNT IDEBIT CREDIT 30-Juno Waces Expenses $4.399 35 Medical Insurance expenses 5500.00 FICA SS payable $161.80 FICA Medical Pavable $201.55 Income taxes Payable 52 900.00 FUTA parable 518.60 SUTA payable $167 401 Medical Insurance Payable $750 00 $4.899 251 54 299 35 (being wages expense booked as on 30th June Along with Taxes Pavable)