The following data are taken from Fremont Wholesale Company's May payroll:
Administrative salaries $47,600
Sales salaries 65,800
Custodial salaries 9,800
Total payroll $123,200
Salaries subject to 1.45 percent Medicare tax $123,200
Salaries subject to 6.2 percent Social Security tax 103,600
Salaries subject to federal unemployment taxes 19,600
Salaries subject to state unemployment taxes 28,000
Federal income taxes withheld from all salaries 24,920
Assume that the company is subject to a two percent state unemployment tax (due to a favorable experience rating) and a 0.6 percent federal unemployment tax.
Required
Record the following in general journal form on May 31:
a. Accrual of the monthly payroll.
b. Payment of the net payroll.
c. Accrual of employer's payroll taxes. (Assume that the FICA matches the amount withheld.)
d. Payment of these payroll-related liabilities. (Assume that all are settled at the same time.)
