Do It! Review 10-1b
During the month of February, Swifty Corporation’s employees earned wages of $106,560. Withholdings related to these wages were $8,152 for Social Security (FICA), $10,224 for federal income tax, and $2,736 for state income tax. Costs incurred for unemployment taxes were $158 for federal and $230 for state.
Prepare the February 28 journal entries for
Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March(b)
The company’s payroll tax expense.
a)DateAccount Title and ExplanationFebruary 28 Salaries and wages expenseFederal income tax withheldState income tax withheldFICA Tax Payablesalaries and wages payable DebitCredit106560…