Excel products inc | Accounting homework help
Excel Products Inc. pays its employees semimonthly. The summary of the payroll for December 31 indicated the following (10 points):
Salary expense $120,000
Federal income tax withheld 20,000
Of the payroll, $40,000 is subject to social security tax of 6%; $120,000 is subject to Medicare tax of 1.5%; $10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%. Present the journal entries for payroll tax expense if the employees are paid
(a) December 31 of the current year,
(b) January 2 of the following year.