Excel Products Inc.pays its employees semimonthly.The summary of the payroll for December 31,2012 indicated the following:

For the year ended 2012,$40,000 of the December 31 payroll is subject to social security tax of 6%;$120,000 is subject to Medicare tax of 1.5%;$10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%.As of January 1,2013 all of the $120,000 is subject to all payroll taxes.Present the journal entries for payroll tax expense if the employees are paid (a)December 31 of the current year, (b)January 2 of the following year.

Question

Excel Products Inc.pays its employees semimonthly.The summary of the payroll for December 31,2012 indicated the following:
  
For the year ended 2012,$40,000 of the December 31 payroll is subject to social security tax of 6%;$120,000 is subject to Medicare tax of 1.5%;$10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%.As of January 1,2013 all of the $120,000 is subject to all payroll taxes.Present the journal entries for payroll tax expense if the employees are paid (a)December 31 of the current year, (b)January 2 of the following year.

Quizplus · Accepted Answer

The Answer of Excel Products Inc.pays its employees semimonthly.The summary of the payroll for December 31,2012 indicated the following:
  
For the year ended 2012,$40,000 of the December 31 payroll is subject to social security tax of 6%;$120,000 is subject to Medicare tax of 1.5%;$10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%.As of January 1,2013 all of the $120,000 is subject to all payroll taxes.Present the journal entries for payroll tax expense if the employees are paid (a)December 31 of the current year, (b)January 2 of the following year.