Apr. 1. Paid the treasurer of the union the amount of union dues withheld from workers' earnings during March. 15. Payroll: $6,105. All wages and salaries taxable. Withheld $565 for federal income taxes, $107.32 for state income taxes, and $50 for union dues. 15. Paid the treasurer of the state the amount of state income taxes withheld from workers' earnings during the first quarter. 15. Electronically transferred funds to remove the liability for FICA taxes and employees' federal income taxes withheld on the March payrolls. 29. Payroll: $5,850. All wages and salaries taxable. Withheld $509 for federal income taxes, $128.90 for state income taxes, and $55 for union dues. 29. Filed the Employer's Quarterly Federal Tax Return (Form 941) for the period ended March 31. No journal entry is required, since the FICA taxes and federal income taxes withheld have been timely paid. 29. Filed the state contribution return for the quarter ended March 31 and paid the amount to the state unemployment compensation fund. May 2. Paid the treasurer of the union the amount of union dues withheld from workers' earnings during April. 13. Payroll: $5,810. All wages and salaries taxable. Withheld $507 for federal income taxes, $125.05 for state income taxes, and $55 for union dues. 16. Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the April payrolls. 31. Payroll: $6,060. All wages and salaries taxable. Withheld $533 for federal income taxes, $119.00 for state income taxes, and $50 for union dues. June 3. Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May. 15. Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues. 15. Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls. 30. Payroll: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues.
The following are the account balances forwarded as of June 1:
(1) Union Due Payable: $105
(2) Employees SIT Payable: $480.27
(3) FICA Taxes Payable - OASDI: $1,471.88
(4) FICA Taxes Payable - HI: $344.24
(5) Employees FIT Payable: $1,040.00
(6) FUTA Taxes Payable: $292.11
(7) SUTA Taxes Payable: $547.98
(8) Cash: $31,805.77
(9) Wages and Salaries: $95,185.00
(10) Payroll taxes: $9,360.29
Note: The SUTA tax rate is 2.3%.
a. Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.
GENERAL JOURNAL PAGE 21 DATE DESCRIPTION DEBIT CREDIT 20-- Jun. 3 Jun. 15-Payroll Jun. 15-Taxes Jun. 15-Federal Taxes Jun. 30-Payroll Jun. 30-Taxes
| Apr. | 1. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during March. | |
| 15. | Payroll: $6,105. All wages and salaries taxable. Withheld $565 for federal income taxes, $107.32 for state income taxes, and $50 for union dues. | ||
| 15. | Paid the treasurer of the state the amount of state income taxes withheld from workers' earnings during the first quarter. | ||
| 15. | Electronically transferred funds to remove the liability for FICA taxes and employees' federal income taxes withheld on the March payrolls. | ||
| 29. | Payroll: $5,850. All wages and salaries taxable. Withheld $509 for federal income taxes, $128.90 for state income taxes, and $55 for union dues. | ||
| 29. | Filed the Employer's Quarterly Federal Tax Return (Form 941) for the period ended March 31. No journal entry is required, since the FICA taxes and federal income taxes withheld have been timely paid. | ||
| 29. | Filed the state contribution return for the quarter ended March 31 and paid the amount to the state unemployment compensation fund. | ||
| May | 2. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during April. | |
| 13. | Payroll: $5,810. All wages and salaries taxable. Withheld $507 for federal income taxes, $125.05 for state income taxes, and $55 for union dues. | ||
| 16. | Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the April payrolls. | ||
| 31. | Payroll: $6,060. All wages and salaries taxable. Withheld $533 for federal income taxes, $119.00 for state income taxes, and $50 for union dues. | ||
| June | 3. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May. | |
| 15. | Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues. | ||
| 15. | Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls. | ||
| 30. | Payroll: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues. |
The following are the account balances forwarded as of June 1:
(1) Union Due Payable: $105
(2) Employees SIT Payable: $480.27
(3) FICA Taxes Payable - OASDI: $1,471.88
(4) FICA Taxes Payable - HI: $344.24
(5) Employees FIT Payable: $1,040.00
(6) FUTA Taxes Payable: $292.11
(7) SUTA Taxes Payable: $547.98
(8) Cash: $31,805.77
(9) Wages and Salaries: $95,185.00
(10) Payroll taxes: $9,360.29
Note: The SUTA tax rate is 2.3%.
a. Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.
| GENERAL JOURNAL | PAGE 21 | |||
|---|---|---|---|---|
| DATE | DESCRIPTION | DEBIT | CREDIT | |
| 20-- | ||||
| Jun. 3 | ||||
| Jun. 15-Payroll | ||||
| Jun. 15-Taxes | ||||
| Jun. 15-Federal Taxes | ||||
| Jun. 30-Payroll | ||||
| Jun. 30-Taxes | ||||
Related questions
| June | 3. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May. | |
| 15. | Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues. | ||
| 15. | Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls. | ||
| 30. | Payroll: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues. |
The following are the account balances forwarded as of June 1:
(1) Union Due Payable: $105
(2) Employees SIT Payable: $480.27
(3) FICA Taxes Payable - OASDI: $1,471.88
(4) FICA Taxes Payable - HI: $344.24
(5) Employees FIT Payable: $1,040.00
(6) FUTA Taxes Payable: $292.11
(7) SUTA Taxes Payable: $547.98
(8) Cash: $31,805.77
(9) Wages and Salaries: $95,185.00
(10) Payroll taxes: $9,360.29
Note: The SUTA tax rate is 2.3%.
a. Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.
| GENERAL JOURNAL | PAGE 21 | |||
|---|---|---|---|---|
| DATE | DESCRIPTION | DEBIT | CREDIT | |
| 20-- | ||||
| Jun. 3 | Union Dues Payable | |||
| Cash | ||||
| Jun. 15-Payroll | Wages and Salaries | |||
| FICA Taxes Payable-OASDI | ||||
| FICA Taxes Payable-HI | ||||
| Employees FIT Payable | ||||
| Employees SIT Payable | ||||
| Union Dues Payable | ||||
| Cash | ||||
| Jun. 15-Taxes | Payroll Taxes | |||
| FICA Taxes Payable-OASDI | ||||
| FICA Taxes Payable-HI | ||||
| FUTA Taxes Payable | ||||
| SUTA Taxes Payable | ||||
| Jun. 15-Federal Taxes | FICA Taxes Payable-OASDI | |||
| FICA Taxes Payable-HI | ||||
| Employees FIT Payable | ||||
| Cash | ||||
| Jun. 30-Payroll | Wages and Salaries | |||
| FICA Taxes Payable-OASDI | ||||
| FICA Taxes Payable-HI | ||||
| Employees FIT Payable | ||||
| Employees SIT Payable | ||||
| Union Dues Payable | ||||
| Cash | ||||
| Jun. 30-Taxes | Payroll Taxes | |||
| FICA Taxes Payable-OASDI | ||||
| FICA Taxes Payable-HI | ||||
| FUTA Taxes Payable | ||||
| SUTA Taxes Payable | ||||
b. Post the June journal entries in chronological order to the general ledger accounts in the attached spreadsheet. When finished, enter the final June 30 balance of each account below.
| 1. Cash | $ |
| 2. FICA Taxes Payable-OASDI | $ |
| 3. FICA Taxes Payable-HI | $ |
| 4. FUTA Taxes Payable | $ |
| 5. SUTA Taxes Payable | $ |
| 6. Employees FIT Payable | $ |
| 7. Employees SIT Payable | $ |
| 8. Union Dues Payable | $ |
| 9. Wages and Salaries | $ |
| 10. Payroll Taxes | $ |
c. Answer the following questions:
Enter your answers to the nearest cent. If an amount is zero, enter "0".
1. The total amount of the liability for FICA taxes and federal income taxes withheld as of June 30 is:
$
2. The total amount of the liability for state income taxes withheld as of June 30 is:
$
3. The amount of FUTA taxes that must be paid to the federal government on or before August 1 (July 31 is a Sunday) is:
$
4. The amount of contributions that must be paid into the state unemployment compensation fund on or before August 1 is:
$
5. The total amount due the treasurer of the union is:
$
6. The total amount of wages and salaries expense since the beginning of the fiscal year is:
$
7. The total amount of payroll taxes expense since the beginning of the fiscal year is:
$
8. Using the partial journal below, journalize the entry to record the vacation accrual at the end of the company's fiscal year. The amount of Brookins Company's vacation accrual for the fiscal year is $15,000.
| Account | Debit | Credit |
|---|---|---|
| Vacation Benefits Expense | ||
| Vacation Benefits Payable |
The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.: Salaries: Sales salaries $325,000 Warehouse salaries 196,000 Office salaries 131,000 $652,000 Deductions: Income tax withheld $119,000 Social security tax withheld 39,120 Medicare tax withheld 9,780 Retirement savings 14,344 Group insurance 11,736 $193,980 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.6% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pharrell Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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A. December 30, to record the payroll. B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. On page 11 of the journal: December 30, to record the payroll. B. On page 12 of the journal: January 5, to record the employerâs payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.
Problem Information
Use the following tax rates and taxable wage bases: Employees' and Employer's OASDIâ6.2% both on $118,500; HIâ1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9% on wages in excess of $200,000 was not applicable.
At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1.5 times the regular hourly rates.
Company records show the following information for the week ended December 26, 20--.
| Employee | Salary | Hrs. Worked | Cumulative Taxable Wages as of Last Pay Period (12/19/--) | ||||||||
| OFFICE | King, M. | $119,600.00 per year | 40 | $117,300.00 | |||||||
| Manera, E. | $6,500.00 per month | 40 | $76,500.00 | ||||||||
| Tate, S. | $3,900.00 per month | 48 | $45,900.00 | ||||||||
| Yee, L. | $12.50 per hour | 44.5 | $27,675.13 | ||||||||
| PLANT | Diaz, R. | $12.50 per hour | 48 | $14,778.96 | |||||||
| Zagst, J. | $14.50 per hour | 52 | $24,703.02 | ||||||||
On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20--. Also, determine the total where indicated. Round your answers to the nearest cent and use those rounded amounts in subsequent calculations. If an amount box does not require an entry, leave it blank.
| Weekly Payroll for Period Ending December 26, 20-- | |||||||||||
| Employee | Salary | Hrs. Worked | Regular Earnings (A) | Overtime Earnings (B) | Total Reg. and O/T Earnings (C) | Cum. Taxable Wages as of Last Pay Period (12/19/--) | FICA Taxable Wages This Pay Period (D) | FICA Taxes to be Withheld (E) | Net Pay (F) | ||
| OASDI | HI | OASDI | HI | ||||||||
| OFFICE: King, M. | $119,600.00 per year | 40 | $ | $ | $ | $117,300.00 | $ | $ | $ | $ | $ |
| Manera, E. | $6,500.00 per mo. | 40 | $76,500.00 | ||||||||
| Tate, S. | $3,900.00 per mo. | 48 | $45,900.00 | ||||||||
| Yee, L. | $12.50 per hr. | 44.5 | $27,675.13 | ||||||||
| PLANT: Diaz, R. | $12.50 per hr. | 48 | $14,778.96 | ||||||||
| Zagst, J. | $14.50 per hr. | 52 | $24,703.02 | ||||||||
| Totals | .... | .... | $ | $ | $ | .... | $ | $ | $ | $ | $ |
Employer's FICA Taxes:
| OASDI: | $ |
| HI: | $ |
