Accounting Principles: P11-5A or the year ended December 31, 208, Blasing Electrical Repair Company

Accounting Principles

P11-5A
For the year ended December 31, 208, Blasing Electrical Repair Company reports the following summary payroll data.
Gross earnings:
Administrative salaries 200,000
Electrician’s wages 370,000
Total 570,000

Deductions:
FICA taxes 38,800
Federal income taxes withheld 174,400
State income taxes withheld(3%) 17,100
United Fund contributions payable 27,500
Hospital insurance premiums 17,200
Total 275,000

Blasing Company’s payroll taxes are: FICA 8%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to FICA taxes total $485,000, and unemployment taxes total $135,000.

Instructions
(a) Prepare a summary journal entry at December 31for the full year’s payroll.
(b) Journalize the adjusting entry at December 31 to record the employer’s payroll taxes.
(c) The W-2 Wage and Tax Statement requires the following dollar data.
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