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.
$$\begin{array} { | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Office } \
\text { Salaries }
\end{array} & \text { Sales Salaries } & \begin{array} { c }
\text { Social Security } \
\text { Taxes }
\end{array} & \text { Medicare Taxes } & \begin{array} { c }
\text { Federal Income } \
\text { Taxes }
\end{array} \
\hline \$ 38,000 & \$ 26,000 & \$ 3,968 & \$ 928 & \$ 5,600 \
\hline
\end{array}$$
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.
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Office } \
\text { Salaries }
\end{array} & \text { Sales Salaries } & \begin{array} { c } 
\text { Social Security } \
\text { Taxes }
\end{array} & \text { Medicare Taxes } & \begin{array} { c } 
\text { Federal Income } \
\text { Taxes }
\end{array} \
\hline \$ 38,000 & \$ 26,000 & \$ 3,968 & \$ 928 & \$ 5,600 \
\hline
\end{array}$$ 
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.
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Office } \
\text { Salaries }
\end{array} & \text { Sales Salaries } & \begin{array} { c } 
\text { Social Security } \
\text { Taxes }
\end{array} & \text { Medicare Taxes } & \begin{array} { c } 
\text { Federal Income } \
\text { Taxes }
\end{array} \
\hline \$ 38,000 & \$ 26,000 & \$ 3,968 & \$ 928 & \$ 5,600 \
\hline
\end{array}$$ 
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