For the week ended January 27, the Massengill Company had a total payroll of $100,000. The company withheld three items from employees’ paychecks: (1) Social Security (FICA) tax of 7.1% of the...

For the week ended January 27, the Massengill Company had a total payroll of $100,000. The company withheld three items from employees’ paychecks: (1) Social Security (FICA) tax of 7.1% of the payroll; (2) income taxes, which average 22% of the payroll; and (3) employees’ savings that are deposited in their Credit Union, which are $6,000. Massengill paid all three items together with the wages on January 30. 1. Use the balance sheet equation to analyze the transactions on January 27 and January 30. 2. Prepare journal entries for the recording of the items in requirement 1. 3. In addition to the payroll, Massengill pays (1) payroll taxes of 9% of the payroll, (2) health insurance premiums of $7,000, and (3) contributions to the employees’ pension fund of $8,000. Prepare journal entries for the recognition and payment of these additional expenses.View Solution:

For the week ended January 27 the Massengill Company had