Problem:
Giblin's Goodies pays employees weekly on Fridays. However, the company notices that May 31 is a Tuesday, and the pay period will end on June 3. The payroll data for May 30-31 is as follows:
Gross pay: $4,000.00
Federal income tax: $460.00
Social Security tax: $248.00
Medicare tax: $58.00
State income tax: $80.00
Federal unemployment tax $24.00
State unemployment tax $216.00
Required:
Give the adjusting entry in the General Journal to recognize the employee and employer share of the payroll for May 30-31. The date of the entry is May 31. Then record the journal entry to reverse the adjustment on June 1, 2022.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.
Record the reversal of adjusting Journal Entry for employer's share of payroll accrual.