Question

Wade Industries reported the following information in its accounting records on December 31, 2015:


Gross salaries earned by employees (December 2931) $7,200
Income taxes withheld from employees (December 2931) 1,100
FICA taxes withheld from employees (December 2931) 420
Net payment to employees (made on December 31) $5,680

The employees were paid $5,680 on December 31, 2015, but the withholdings have not yet been remitted nor have the matching employer FICA contributions.

Required:

Part a. Compute the total payroll costs relating to the period from December 2931. (Assume $560 in total unemployment taxes.)

Part b. Show the accounting equation effects and give the journal entries on December 31 to adjust for salaries and wages relating to December 2931, 2015.

Part c. Show the accounting equation effects and give the journal entries on December 31 to adjust for payroll taxes relating to December 2931, 2105.

Answer

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