For The Year Ended December 31 2014 Grayson Electrical Repair

For the year ended December 31, 2014, Grayson Electrical Repair Company reports the following summary payroll data.
Gross earnings:
Administrative salaries ……….$180,000
Electricians’ wages …………. 370,000
Total ………………$550,000
Deductions:
FICA taxes …………….$ 37,983
Federal income taxes withheld ……. 168,000
State income taxes withheld (3.2%) ….. 17,600
United Fund contributions payable ….. 27,500
Hospital insurance premiums …….. 32,200
Total ……………..$283,283
Grayson Company’s payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to Social Security taxes total $484,000, and unemployment taxes total $125,000.

Instructions
(a) Prepare a summary journal entry at December 31 for the full year’s payroll.
(b) Journalize the adjusting entry at December 31 to record the employer’s payroll taxes.
(c) The W-2 Wage and Tax Statement requires the following dollar data.

For the year ended December 31, 2014, Grayson Electrical Repair

Complete the required data for the followingemployees.

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