Problem VIII
The following information is obtained concerning the weekly payroll of AB Corporation which has two employees, Anderson and Buckingham.
Anderson Buckingham
Year-to-date pay $137,000 $9,500
Hourly wage rate $120 $20 .
Hours worked 60 30
Federal Withholding Taxes $940 $50
Medical Insurance Premiums $540 $70
Union Dues $100 $10
401 (k) Contribution Percentage 5% 5%
Additional Data:
1) Social Security is taxed at 6% of the first $140,000 of annual wages.
2) Medicare is taxed at 1.5% of all wages.
3) State Unemployment Insurance is taxed at 5% of the first $10,000 of annual wages.
4) Federal Unemployment Insurance is taxed at 1% of the first $10,000 0f annual wages.5) AB Corporation matches 100% of all 401 (k) employee contributions.
Required:
Prepare the necessary journal entries relating to the weekly payroll for the AB Corporation.