Payroll Tax Journal

journalize the payroll and payroll taxes of two different
companies. Use the journal table provided in this document.

Instructions
journalize the payroll and payroll taxes of two different companies. Use the journal table provided in this
document.
1. The following information pertains to a weekly payroll of Donnelly Music Company:
•
The employees of Donnelly Music Company earn total wages of $4,690 during January. The
total amount is taxable under FICA, FUTA, and SUTA.
•
The state contribution rate for the company is 3.6%.
•
The amount withheld for federal income taxes is $685.
Journalize the payment of the monthly wages and record the payroll taxes.
JOURNAL
DATE
20–
DESCRIPTION
POST.
REF.
DEBIT
CREDIT
2. The following information pertains to a weekly payroll of Texera Tile Company:
1
•
The total wages earned by employees are $17,210.
•
The state unemployment insurance contribution rate is 3.5%.
•
The entire amount of wages is taxable under FICA, FUTA, and SUTA.
•
The amount withheld from the employees’ wages for federal income taxes is $1,890; for state income
taxes, $369.40; and for group insurance, $193.00.
Journalize the payment of wages and record the payroll taxes for this payroll.
Page
JOURNAL
DATE
20–
DESCRIPTION
DEBIT
CREDIT
2
Criteria
Ratings
Payroll – Donnelly
Excellent
Music
All 5 journal entries are
Journalize the
recorded correctly in
payroll for Donnelly
debit and credit
Music5 Points
accounts.5 points
(Max)
Payroll Taxes Excellent
Donnelly Music
Satisfactory
Needs Improvement
3-4 journal entries are
1-2 journal entries are
recorded correctly in debit recorded correctly in debit
and credit accounts.3
and credit accounts.1
Incomplete
points
points
There are no correct journal
entries recorded correctly or this
portion of the assignment is
missing.0 points
Satisfactory
Needs Improvement
Incomplete
All 5 journal entries are
Journalize payroll
recorded correctly in
taxes for Donnelly
debit and credit
Music5 Points
accounts.5 points
3-4 journal entries are
1-2 journal entries are
recorded correctly in debit recorded correctly in debit
and credit accounts.3
and credit accounts.1
points
points
There are no correct journal
entries recorded correctly or this
portion of the assignment is
missing.0 points
Payroll – Texera Excellent
Satisfactory
Needs Improvement
Incomplete
(Max)
All 7 journal entries are
Journalize payroll
recorded correctly in
for Texera Tile5
debit and credit
Points (Max) accounts.5 points
3-6 journal entries are
1-2 journal entries are
recorded correctly in debit recorded correctly in debit
and credit accounts.3
and credit accounts.1
points
Satisfactory
Payroll Taxes – Excellent
All 5 journal entries are 3-4 journal entries are
Texera
Journalize payroll recorded correctly in
taxes for Texera debit and credit
Tile5 Points (Max) accounts.5 points
points
Needs Improvement
1-2 journal entries are
recorded correctly in debit recorded correctly in debit
and credit accounts.3
and credit accounts.1
points
points
There are no correct journal
entries recorded correctly or this
portion of the assignment is
missing.0 points
Incomplete
There are no correct journal
entries recorded correctly or this
portion of the assignment is
missing.0 points
Total: 20 Points
(Max)
3