During the month of March, Munster Company's employees earned wages of $64,000. Withholdings related to these wages were $4,896 for FICA, $7,500 for federal income tax, $3,100 for state income tax, and $400 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $700 for state unemployment tax. Journalize payroll entries.

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rodrigo61 · Accepted Answer

Answer:A. Dr salaries and wages expense for 64,000Cr to FICA taxes payable for 4,896Cr Federal Income Tax Payable for 7,500Cr State Income Tax Payable for 3,100Cr Union Dues Payable for 400Cr Salaries and Wages Payable for 48,104B. Dr payroll tax expense for 5,596Cr FICA tax payable for 4,896Cr State Unemployment for 700Explanation:Preparation to Journalize the payroll entriesA. Dr salaries and wages expense for 64,000Cr to FICA taxes payable for 4,896Cr Federal Income Tax Payable for 7,500Cr State Income Tax Payable for 3,100Cr Union Dues Payable for 400Cr Salaries and Wages Payable for 48,104(64,000-4,896-7,500-3,100-400)B. Dr payroll tax expense for 5,596(4,896+700)Cr FICA tax payable for 4,896Cr State Unemployment for 700

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