Townson Company had gross wages of $200,000 during the week ended December 10.The amount of wages subject to social security tax was $180,000,while the amount of wages subject to federal and state unemployment taxes was $24,000.Tax rates are as follows:
$\begin{array}{lccc}
\text { Social security } & 6.0 \%\
\text { Medicare } & 1.5 \%\
\text { State unemployment } & 5.3 \%\
\text {Federal unemployment } & 0.8 \%\
\end{array}$
The total amount withheld from employee wages for federal income taxes was $32,000.
a- Journalize the entry to record the payroll for the week of December 10.
b- Journalize the entry to record the payroll tax expense incurred for the week of December 10.

Question

Townson Company had gross wages of $200,000 during the week ended December 10.The amount of wages subject to social security tax was $180,000,while the amount of wages subject to federal and state unemployment taxes was $24,000.Tax rates are as follows:
 $\begin{array}{lccc}
  \text { Social security  } &   6.0  \%\
  \text { Medicare  } & 1.5 \%\
  \text { State unemployment  } &  5.3  \%\
  \text {Federal unemployment  } &  0.8 \%\
\end{array}$
 The total amount withheld from employee wages for federal income taxes was $32,000.
a- Journalize the entry to record the payroll for the week of December 10.
b- Journalize the entry to record the payroll tax expense incurred for the week of December 10.

Quizplus · Accepted Answer

The Answer of Townson Company had gross wages of $200,000 during the week ended December 10.The amount of wages subject to social security tax was $180,000,while the amount of wages subject to federal and state unemployment taxes was $24,000.Tax rates are as follows:
 $\begin{array}{lccc}
  \text { Social security  } &   6.0  \%\
  \text { Medicare  } & 1.5 \%\
  \text { State unemployment  } &  5.3  \%\
  \text {Federal unemployment  } &  0.8 \%\
\end{array}$
 The total amount withheld from employee wages for federal income taxes was $32,000.
a- Journalize the entry to record the payroll for the week of December 10.
b- Journalize the entry to record the payroll tax expense incurred for the week of December 10.

Townson Company Had Gross Wages of $200,000 During the Week