Do It! Review 10-1b During the month of February, Riverbed Corpâs employees earned wages of $94,720. Withholdings related to these wages were $7,246 for Social Security (FICA), $9,088 for federal income tax, and $2,432 for state income tax. Costs incurred for unemployment taxes were $141 for federal and $205 for state. Prepare the February 28 journal entries for (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March (b) The companyâs payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit a) Feb. 28 b) Feb. 28 SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER
Do It! Review 10-1b During the month of February, Riverbed Corpâs employees earned wages of $94,720. Withholdings related to these wages were $7,246 for Social Security (FICA), $9,088 for federal income tax, and $2,432 for state income tax. Costs incurred for unemployment taxes were $141 for federal and $205 for state. Prepare the February 28 journal entries for (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March (b) The companyâs payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit a) Feb. 28 b) Feb. 28 SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER
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 payroll register for D. Salah Company for the week ended May 18 indicated the following:
| Salaries | $555,000 |
| Federal income tax withheld | 111,000 |
The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $10,545 of salaries.
| Required: | |||
| a. Journalize the entry to record the payroll for the week of May 18.* | |||
b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.*
|
Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| D. Salah Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
| a. Journalize the entry to record the payroll for the week of May 18.* | |||
b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.*
|
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JOURNAL
ACCOUNTING EQUATION
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