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Analyzing and Journalizing Payroll Transactions

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.

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FICA, FUTA and SUTA taxes are due when wages are actually paid and state and federal income taxes are withheld from paid wages . Therefore, ...

Solution Summary

This solution illustrates how to compute the amount of accrued wages and journalize it.