Question

The payroll register of Heritage Co. indicates $13,440 of social security withheld and $3,360 of Medicare tax withheld on total salaries of $224,000 for the period. Federal withholding for the period totaled $43,140. Retirement savings withheld from employee paychecks were $2,660 for the period. Journalize the entry to record the period’s payroll. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Answer and Explanation:

The journal entries are shown below:

Salary & Wages expense $224,000

   To social security Payable  $13,440

   To Medicare tax Payable           $3,360

   To Federal Tax Witholding Payable  $43,140

   To Retirement contribution payable  $2,660

    To Salary & Wages Payable    $161,400 (Balancing figure)

(Being the period payroll is recorded)

For recording this we debited the salary & wages expense as it increased the expenses and credited all other accounts as it increased the liabilities