Current Attempt in ProgressFor the year ended December 31, 2022, Sheridan Electrical Repair Company reports the following summary payroll data.Gross earnings:Administrative salariesElectricians' wagesTotalDeductions:FICA taxesFederal income taxes withheldState income taxes withheld (3%)United Fund contributions payableHealth insurance premiums(a)(b)Total$204,000358,000$562,000$37,785171,50016,86027,11419,000$272,259Sheridan's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employmentrecord), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $478,000, and gross earningssubject to unemployment taxes total $150,000. No employee exceeds the $132,900 limit related to FICA taxes.Prepare a summary journal entry at December 31 for the full year's payroll.Journalize the adjusting entry at December 31 to record the employer's payroll taxes.(Round answers to 0 decimal places, e.g. 125, Credit account titles are automatically indented when amount is entered. Donot indent manually.)

Payroll taxes are compulsory contributions employers deduct from employees' wages to fund social…

Answered: (a) (b) Prepare a summary journal entry…

(a) (b) Prepare a summary journal entry at December 31 for the full year's payroll. Journalize the adjusting entry at December 31 to record the employer's payroll taxes.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 14E

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