On December 31, 2010 Karmansky Co. needed to record its accrued wages for year-end. December 31 is a Tuesday, and Karmansky Co. must account for two days of wages. The company operates on a five-day workweek, the prior week's gross pay(December 26 payday) was $32,650, and the net pay was $21,330. Journalize the adjusting entry to be made on December 31 for the the accrued wages.
FICA, FUTA and SUTA taxes are due when wages are actually paid and state and federal income taxes are withheld from paid wages . Therefore, ...
This solution illustrates how to compute the amount of accrued wages and journalize it.