Question

During the month of February, Indigo Corporation’s employees earned wages of $105,080. Withholdings related to these wages were $8,039 for Social Security (FICA), $10,082 for federal income tax, and $2,698 for state income tax. Costs incurred for unemployment taxes were $156 for federal and $227 for state. Prepare the February 28 journal entries for (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March (b) The company’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit a) Feb. 28 Salaries and Wages Expense 105,080 FICA Taxes Payable 8039 Federal Income Taxes Payable 10,082 State Income Taxes Payable 2,698 Salaries and Wages Payable 84261 b) Feb. 28 Payroll Tax Expense FICA Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable

Answer 1

		Debit	Credit
Feb. 28	Salaries and Wages Expense	105080
	FICA Taxes Payable		8039
	Federal Income Tax payable		10082
	State income Tax payable		2698
	Salaries and Wages Payable		84261
Feb. 28	Payroll Taxes Expense	8422
	FICA Taxes Payable		8039
	Federal unemployment tax payable		156
	State unemployment tax payable		227