An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000.
Required:
Prepare the journal entries to record the salaries expense and the employer payroll tax expense. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places.
CHART OF ACCOUNTS
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Merchandise Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
221 Salaries Payable
222 Social Security Taxes Payable
223 Medicare Taxes Payable
224 Federal Withholding Taxes Payable
225 State Withholding Taxes Payable
226 Federal Unemployment Comp. Taxes Payable
227 State Unemployment Comp. Taxes Payable
228 State Disability Insurance
231 Medical Insurance Payable
232 Retirement Savings Deductions Payable
233 Union Dues Payable
234 Vacation Pay Payable
241 Product Warranty Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary