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
110Cash
111Accounts Receivable
112Interest Receivable
113Notes Receivable
115Merchandise Inventory
116Supplies
118Prepaid Insurance
120Land
123Building
124Accumulated Depreciation-Building
125Office Equipment
126Accumulated Depreciation-Office Equipment
LIABILITIES
210Accounts Payable
213Interest Payable
214Notes Payable
221Salaries Payable
222Social Security Taxes Payable
223Medicare Taxes Payable
224Federal Withholding Taxes Payable
225State Withholding Taxes Payable
226Federal Unemployment Comp. Taxes Payable
227State Unemployment Comp. Taxes Payable
228State Disability Insurance
231Medical Insurance Payable
232Retirement Savings Deductions Payable
233Union Dues Payable
234Vacation Pay Payable
241Product Warranty Payable
EQUITY
310Common Stock
311Retained Earnings
312Dividends
313Income Summary