Question

The payroll register of Seaside Architecture Company indicates $910 of Social Security and $250 of Medicare tax withheld on total salaries of $15,000 for the period. Federal withholding for the period totaled $3,245.

Required:
1. Provide the journal entry for the period's payroll.
CHART OF ACCOUNTS
Seaside Architecture Company
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
221 Salaries Payable
222 Social Security Tax Payable
223 Medicare Tax Payable
224 Employees Federal Income Tax Payable
225 State Withholding Tax Payable
226 Federal Unemployment Tax Payable
227 State Unemployment Tax Payable
228 State Disability Insurance
231 Medical Insurance Payable
232 Retirement Savings Deductions Payable
233 Union Dues Payable
234 Vacation Pay Payable
235 Unfunded Pension Liability
241 Product Warranty Payable
242 EPA Fines Payable
243 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
520 Salaries Expense
525 Delivery Expense
526 Repairs Expense
531 Rent Expense
533 Insurance Expense
534 Supplies Expense
535 Cash Short and Over
536 Product Warranty Expense
541 Vacation Pay Expense
542 Pension Expense
543 Payroll Tax Expense
544 Federal Income Tax Expense
545 State Income Tax Expense
561 Depreciation Expense-Building
562 Depreciation Expense-Office Equipment
570 Damage Awards and Fines
590 Miscellaneous Expense
710 Interest Expense
2. Prepare the journal entry for the period’s payroll on December 31.

Answer 1

Answer and Explanation:

The journal entries are shown below:

Salaries expense Dr $15,000

To Social security tax payable $910

To Medicare tax payable $250

To Employees federal income tax payable $3,245

To Salaries payable $10,595 (Balancing figure)

(Being the payroll expense is recorded)

For recording this we debited the salaries expense as it increased the expenses and credited all payable account as it also increased the liabilities