The following payroll liability accounts are included in the ledger of Patteri Company on January 1, 2012.
|
FICA Taxes Payable |
$ 540 |
|
Federal Income Taxes Payable |
1,100 |
|
State Income Taxes Payable |
210 |
|
Federal Unemployment Taxes Payable |
54 |
|
State Unemployment Taxes Payable |
365 |
|
Union Dues Payable |
200 |
|
U.S. Savings Bonds Payable |
300 |
In January, the following transactions occurred.
|
Jan. |
10 |
Sent check for $200 to union treasurer for union dues. |
|
12 |
Remitted check for $1,640 to the Federal Reserve bank for FICA taxes and federal |
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income taxes withheld. |
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15 |
Purchased U.S. Savings Bonds for employees by writing check for $300. |
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17 |
Paid state income taxes withheld from employees. |
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20 |
Paid federal and state unemployment taxes. |
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|
31 |
Completed monthly payroll register, which shows office salaries $17,400, store wages |
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$22,500, FICA taxes withheld $3,192, federal income taxes payable $2,540, state income |
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taxes payable $500, union dues payable $300, United Fund contributions payable |
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$1,300, and net pay $32,068. |
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31 |
Prepared payroll checks for the net pay and distributed checks to employees. |
At January 31, the company also makes the following accruals pertaining to employee compensation.
1. Employer payroll taxes: FICA taxes 8%, state unemployment taxes 5.4%, and federal unemployment taxes 0.8%.
2. Vacation pay: 5% of gross earnings.
Instructions
(a) Journalize the January transactions.
(b) Journalize the adjustments pertaining to employee compensation at January 31.