Question 1
During the month of March, Olinger Company's employees earned wages of $71,000. Withholdings related to these wages were $5,432 for Social Security (FICA), $8,320 for federal income tax, $3,439 for state income tax, and $444 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $777 for state unemployment tax
Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the entry to record the company's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Question 2
On August 1, 2014, Ortega Corporation issued $571,200, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Ortega's year-end is December 31.
Prepare journal entries to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare journal entries to record the accrual of interest on December 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare journal entries to record the payment of interest on August 1, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)