Paul Company completed the salary and wage payroll for March 2011. The Payroll provided the following details: Salary and Wages earned: $200,000
Employee Income Taxes withheld: 40,000
Insurance Premiums withheld: 1,000
FICA payroll taxes*: 15,000
15,000 each for employer and employee
Required:
1. Give the Journal entry to record the payroll for March, including employee deductions.
2. Give journal entry to record the employer's payroll taxes.
3. Give a combined journal entry to show the payment of amounts owed to governmental agencies.

1.       Journal Entry

Date       Account Titles and Explanation           Debit           Credit

March    Salary and Wage Expenses                  $200,000

2011       Liability for income tax withheld -                                $40,000

              Employee              

              Liability for insurance premium                                   $1,000

              withheld - employee      

              FICA taxes payable - Employees                                 $15,000

              Cash                                                                              $144,000

              (Payroll for February including employee deductions)

2.       Journal Entry

Date       Account Titles and Explanation           Debit          Credit

March     Payroll tax expenses                             $15,000

2011         FICA taxes payable - Employer                               $15,000

              (Employer Payroll taxes on February payroll)

3.       Journal Entry

Date       Account Titles and Explanation           Debit             Credit

March    Liability for income tax withheld            $40,000

2011       - Employee              

             Liability for insurance premium               $1,000

             withheld - employee      

              FICA taxes payable - Employees            $15,000

              FICA taxes payable - Employers             $15,000

              Cash                                                                               $71,000

       (Remittance of payroll taxes and deduction for February payroll)

answer; measurable outcome;