(Learning Objective 4: Account for accrued payroll) Fitzgerald Company pays itsemployees every other Friday. December 31, 2017, was a Sunday. On Friday, January 5, 2018,Fitzgerald paid wages of $112,000, which covered the 14-day period from December 20, 2017,through January 2, 2018. Wages were earned evenly across all days, including Saturdays andSundays. Employee income taxes withheld for this payroll period totaled $15,610, while theFICA tax withheld was $12,600. (Ignore the employer payroll taxes in this exercise.) Preparethe entry to accrue the company’s wages and payroll taxes at December 31, 2017.
(Learning Objective 4: Account for accrued payroll) Fitzgerald Company pays itsemployees every other Friday. December 31, 2017, was a Sunday. On Friday, January 5, 2018,Fitzgerald paid wages of $112,000, which covered the 14-day period from December 20, 2017,through January 2, 2018. Wages were earned evenly across all days, including Saturdays andSundays. Employee income taxes withheld for this payroll period totaled $15,610, while theFICA tax withheld was $12,600. (Ignore the employer payroll taxes in this exercise.) Preparethe entry to accrue the company’s wages and payroll taxes at December 31, 2017.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter11: Current Liabilities And Payroll
Section: Chapter Questions
Problem 4PB
Related questions
Question
(Learning Objective 4: Account for accrued payroll) Fitzgerald Company pays its
employees every other Friday. December 31, 2017, was a Sunday. On Friday, January 5, 2018,
Fitzgerald paid wages of $112,000, which covered the 14-day period from December 20, 2017,
through January 2, 2018. Wages were earned evenly across all days, including Saturdays and
Sundays. Employee income taxes withheld for this payroll period totaled $15,610, while the
FICA tax withheld was $12,600. (Ignore the employer payroll taxes in this exercise.) Prepare
the entry to accrue the company’s wages and payroll taxes at December 31, 2017.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub