183. Excel Products Inc. pays its employees semimonthly. The summary of the payroll for December 31 indicated the following:
Salary expense
$120,000
Federal income tax withheld
20,000
Of the payroll, $40,000 is subject to social security tax of 6%; $120,000 is subject to Medicare tax of 1.5%; $10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%. Present the journal entries for payroll tax expense if the employees are paid (a) December 31 of the current year, (b) January 2 of the following year.
(a)
(b)
184. Journalize the following transactions:
Dec. 31
The accrued product warranty for the year is estimated to be 1.5% of net sales. Sales for the year totaled $8,000,000, and sales returns and allowances were $120,000.
31
The accrued vacation pay for the year is estimated to be $55,000.
Paid Reliable Insurance Co. $85,000 as fund trustee for the pension plan. The annual pension cost is $97,000.
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