Deacon Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May. $$\begin{array} { | r | r | r | r | r | }
\hline \text { Office Salaries } & \text { Sales Salaries } & \begin{array} { r }
\text { Social Security } \
\text { Taxes }
\end{array} & \text { Medicare Taxes } & \text { Feder al Income Taxes } \
\hline \$ 38,000 & \$ 26,000 & \$ 3,968 & \$ 928 & \$ 5,600 \
\hline
\end{array}$$ a. Recorded the May payroll using the payroll register information given above.
b. Recorded the employer's payroll taxes resulting from the May payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42,000 of the current months salaries are subject to unemployment taxes. The federal rate is 0.6%.
c. Issued a check to Reliant Bank in payment of the May FICA and employee taxes.
d. Issued a check to the state for the payment of the SUTA taxes for the month of May.
e. Issued a check to Reliant Bank in payment of the employer's quarterly FUTA taxes for the first quarter in the amount of $1,020.

Question

Deacon Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May. $$\begin{array} { | r | r | r | r | r | } 
\hline \text { Office Salaries } & \text { Sales Salaries } & \begin{array} { r } 
\text { Social Security } \
\text { Taxes }
\end{array} & \text { Medicare Taxes } & \text { Feder al Income Taxes } \
\hline \$ 38,000 & \$ 26,000 & \$ 3,968 & \$ 928 & \$ 5,600 \
\hline
\end{array}$$ a. Recorded the May payroll using the payroll register information given above.
b. Recorded the employer's payroll taxes resulting from the May payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42,000 of the current months salaries are subject to unemployment taxes. The federal rate is 0.6%.
c. Issued a check to Reliant Bank in payment of the May FICA and employee taxes.
d. Issued a check to the state for the payment of the SUTA taxes for the month of May.
e. Issued a check to Reliant Bank in payment of the employer's quarterly FUTA taxes for the first quarter in the amount of $1,020.

Quizplus · Accepted Answer

The Answer of Deacon Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May. $$\begin{array} { | r | r | r | r | r | } 
\hline \text { Office Salaries } & \text { Sales Salaries } & \begin{array} { r } 
\text { Social Security } \
\text { Taxes }
\end{array} & \text { Medicare Taxes } & \text { Feder al Income Taxes } \
\hline \$ 38,000 & \$ 26,000 & \$ 3,968 & \$ 928 & \$ 5,600 \
\hline
\end{array}$$ a. Recorded the May payroll using the payroll register information given above.
b. Recorded the employer's payroll taxes resulting from the May payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42,000 of the current months salaries are subject to unemployment taxes. The federal rate is 0.6%.
c. Issued a check to Reliant Bank in payment of the May FICA and employee taxes.
d. Issued a check to the state for the payment of the SUTA taxes for the month of May.
e. Issued a check to Reliant Bank in payment of the employer's quarterly FUTA taxes for the first quarter in the amount of $1,020.

Deacon Company Provides You with Following Information Related to Payroll