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Business, 20.06.2020 18:57 arlabbe0606

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 $ 96,000 Sales salaries 57,000 Office salaries 38,000 Assume the Social Security tax rate is 6 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 $11,500 and is included in the $96,000. 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 $ 21,500 State income tax 11,200 Employee savings plan 4,000 Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1.

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