For the year ended December 31, 2012, Radar Company reports the following summary payroll data.
|
Gross earnings: |
Deductions: |
||
|
Administrative salaries |
$150,000 |
FICA taxes |
$ 29,600 |
|
Electricians’ wages |
240,000 |
Federal income taxes withheld |
78,000 |
|
Total |
$390,000 |
State income taxes withheld (3%) |
11,700 |
|
United Fund contributions payable |
17,000 |
||
|
Health insurance premiums |
12,000 |
||
|
Total |
$148,300 |
Radar Company’s payroll taxes are: FICA 8%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to FICA taxes total $370,000, and gross earnings subject to unemployment taxes total $90,000.
Instructions
(a) Prepare a summary journal entry at December 31 for the full year’s payroll.
(b) Journalize the adjusting entry at December 31 to record the employer’s payroll taxes.
(c) The W 2 Wage and Tax Statement requires the dollar data shown below.
|
Wages, Tips, |
Federal Income |
State Income |
FICA |
FICA Tax |
|
Other Compensation |
Tax Withheld |
Tax Withheld |
Wages |
Withheld |
Complete the required data for the following employees.