Blossom Company

Exercise 10-5

Blossom  During the month of March, Blossom Company’s employees earned wages of $72,000. Withholdings related to these wages were $5,508 for Social Security (FICA), $8,438 for federal income tax, $3,488 for state income tax, and $450 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $788 for state unemployment tax.

Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

 Blossom Company

Prepare the entry to record the company’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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