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    Accounting Equation To Record Wages

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    During June, Stone Company's employees earned wages of $18,500. Social Security (FICA) withheld was $1,210.00 and Federal income taxes withheld were $2,008.00. Use the accounting equation to record wages expense and wages payable at the end of February. Stone Company will pay their February wages and pay the payroll taxes to the government the first week in June.

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    Solution Preview

    This is the first entry to record the wages and payroll taxes that were incurred:

    Wage expense.................................18,500
    FICA ...

    Solution Summary

    This solution shows the entries needed to calculate and record employee wages for Stone Company. Includes 1 reference.