For the year ended December 31, 2012, Telmarine Electrical Repair Company

$11.00

Description

For the year ended December 31, 2012, Telmarine Electrical Repair
Company reports the following summary payroll data.

Gross earnings:

Administrative salaries

$208,900

Electricians’ wages

373,000

Total

$581,900

Deductions:

FICA taxes

$39,610

Federal income taxes withheld

178,041

State income taxes withheld (3%)

17,457

United Fund contributions payable

28,074

Health insurance premiums

17,559

Total

$280,741

Telmarine Company’s payroll taxes are: FICA 8%, state
unemployment 2.50% (due to a stable employment record), and 0.80%
federal unemployment. Gross earnings subject to FICA taxes total $495,125, and
gross earnings subject to unemployment taxes total $137,818.

(a)

Prepare a summary journal entry at December 31 for the full
year’s payroll.

(b)

Journalize the adjusting entry at December 31 to record the
employer’s payroll taxes.

(Round answers to 0 decimal places, e.g. 125. Credit account titles
are automatically indented when amount is entered. Do not indent manually.)

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