Giblin’s Goodies pays employees weekly on Fridays. However, the company notices that October 31 is a Thursday and the pay period will end on November 1. The payroll data for October 28–October 31 is as follows:
Gross pay: $4,500.00
Federal income tax: $520.00
Social Security tax: $279.00
Medicare tax: $65.25
State income tax: $90.00
Required: Give the adjusting entry in the General Journal to recognize the employee and employer share of the payroll for October 28-31. Date the entry October 31. Then give the journal entry to reverse the adjustment on November 1, 2019.

Below is the Journal entry to record Giblin's Goodies Adjusting entry and Reversing entry to follow:

Explanation:

Date: October 31

Debit: Salaries and Wages Expense $4,500

         Credit: Salaries and Wages Payable $3,545.75

         Credit: Federal income tax Payable $520.00  

         Credit: Social Security tax Payable $279.00

        Credit: Medicare tax Payable $65.25

         Credit: State income tax Payable $90.00

To record Salaries and Wages Payable.

Date: November 1

Debit: Salaries and Wages Payable $3,545.75

          Credit: Cash $3,545.75

To record payment of Salaries and Wages.

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