The payroll summary for the monthly paid employees is submitted so that December checks can be distributed before year end:

Office and Admin salaries----------------$40900
FICA Taxes withheld-----------------------$2120
Federal Withholding taxes withheld ------$7696
State Withholding Taxes withheld---------$1517

Net pay-----------------------------------$29567

Below is the entry I made but my instructor said the amount is incorrect. Please help:

31-Dec Salaries and Wages Expense 11,333.00
FICA Taxes Payable 2,120.00
Federal Withholding taxes payable 7,696.00
State Withholding Taxes Payable 1,517.00

The expenses account will carry the full amount of the salaries and the net pay will be credited to the cash account

Dec.31
Salaries and Wages expense 40,900
Fica taxes Payable 2,120
Federal Withholding taxes Payable 7,696
State Withholding Taxes Payable 1,517
Cash 29,567


Louis huang

Sometmes they have to work it out for themselves

Thanks a lot!!

Well how hard can it be