p align="left">The following information about the payroll for the week ended December

30 was</p><p align="left">obtained from the records of Arnsparger Equipment

Co.:</p><p align="left">Salaries: Deductions:</p><p align="left">Sales salaries
$244,000 Income tax withheld $ 88,704</p><p align="left">Warehouse salaries 135,000
Social security tax withheld 27,216</p><p align="left">Office salaries _1_2_5__,0_0_0_
Medicare tax withheld 7,560</p><p align="left">$__5__0__4____,0__0__0__ U.S.
savings bonds 11,088</p><p align="left">Group insurance ___9__,0_7_2_</p><p
align="left">__$1____4__3__,6__4__0__</p><p align="left">Tax rates
assumed:</p><p align="left">Social security, 6% on first $100,000 of employee annual
earnings</p><p align="left">Medicare, 1.5%</p><p align="left">State unemployment
(employer only), 4.2%</p><p align="left">Federal unemployment (employer only),
0.8%</p><strong><p align="left">Instructions</p></strong><p align="left">1.
Assuming that the payroll for the last week of the year is to be paid on December
31,</p><p align="left">journalize the following entries:</p><p align="left">a.
December 30, to record the payroll.</p><p align="left">b. December 30, to record the
employer's payroll taxes on the payroll to be paid on</p><p align="left">December 31.
Of the total payroll for the last week of the year, $25,000 is subject</p><p
align="left">to unemployment compensation taxes.</p><p align="left">2. Assuming that
the payroll for the last week of the year is to be paid on January 5</p><p align="left">of
the following fiscal year, journalize the following entries:</p><p align="left">a.
December 30, to record the payroll.</p><p align="left">b. January 5, to record the
employer's payroll taxes on the payroll to be paid on</p><p>January 5.</p>

1. a. Dec. 30 Sales Salaries Expense.......................................... 244,000

Warehouse Salaries Expense................................ 135,000
Office Salaries Expense........................................ 125,000
Employees Income Tax Payable.....................
Social Security Tax Payable...........................
Medicare Tax Payable.....................................
Bond Deductions Payable...............................
Group Insurance Payable...............................
Salaries Payable..............................................
360,360
b. Dec. 30 Payroll Tax Expense.............................................. 36,026
Social Security Tax Payable...........................
Medicare Tax Payable.....................................
State Unemployment Tax Payable.................
Federal Unemployment Tax Payable............
1
$25,000 × 4.2%
2
$25,000 × 0.8%

2. a. Dec. 30 Sales Salaries Expense.......................................... 244,000

Warehouse Salaries Expense................................ 135,000
Office Salaries Expense........................................ 125,000
Employees Income Tax Payable.....................
 Social Security Tax Payable...........................
3
30,240
Medicare Tax Payable.....................................
Bond Deductions Payable...............................
Group Insurance Payable...............................
Salaries Payable..............................................
357,336
3
$504,000 × 6%
4
$504,000 × 1.5%
b. Jan. 5 Payroll Tax Expense.............................................. 63,000
Social Security Tax Payable...........................
Medicare Tax Payable.....................................
State Unemployment Tax Payable.................
21,1685
Federal Unemployment Tax Payable............
5
$504,000 × 4.2%
6
$504,000 × 0.8%