For the Week Ended May 16,Cheap Printing Company Had a Total

Essay

For the week ended May 16,Cheap Printing Company had a total payroll of $183,000.Three items are withheld from employee's paychecks: (1)Social Security (FICA)tax of 7.1% of payroll; (2)income taxes,which average 20% of the payroll; and (3)employees' savings that are deposited in their credit union,which are $12,020.In addition,Cheap Printing Company pays (1)Social Security tax equal to the amount withheld from employees,(2)health insurance premiums of $12,750,and (3)contributions to the employees' pension fund of $17,000.
Prepare the journal entries to record the compensation expense and the employee benefit expense.