For the year ended December 31, 2012, Telmarine Electrical Repair Company reports the following summary payroll data.
| Gross earnings: |
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| Administrative salaries |
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$203,800 |
| Electricians' wages |
|
371,800 |
| Total |
|
$575,600 |
| Deductions: |
|
|
| FICA taxes |
|
$39,181 |
| Federal income taxes withheld |
|
176,113 |
| State income taxes withheld (3%) |
|
17,268 |
| United Fund contributions payable |
|
27,770 |
| Health insurance premiums |
|
17,369 |
| Total |
|
$277,701 |
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 $489,765, and gross earnings subject to unemployment taxes total $136,326.
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(a)
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Prepare a summary journal entry at December 31 for the full year's payroll. |
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(b)
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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.
Complete the required data for the following employees.
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Employee
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Wages, Tips, Other Compensation
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Federal Income Tax Withheld
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State Income Tax Withheld
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FICA Wages
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FICA Tax Withheld
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| Lucie Solarova |
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$63,600 |
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$30,722 |
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$
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$
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$
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| Kristina Madericova |
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30,800 |
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12,083 |
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