The following payroll liability accounts are included in the ledger of Eikleberry Company on January 1, 2011.
|
FICA Taxes Payable |
$ 662.20 |
|
Federal Income Taxes Payable |
1,254.60 |
|
State Income Taxes Payable |
102.15 |
|
Federal Unemployment Taxes Payable |
312.00 |
|
State Unemployment Taxes Payable |
1,954.40 |
|
Union Dues Payable |
250.00 |
|
U.S. Savings Bonds Payable |
350.00 |
In January, the following transactions occurred.
Jan. 10 Sent check for $250.00 to union treasurer for union dues.
12 Deposited check for $1,916.80 in Federal Reserve bank for FICA taxes and federal income taxes withheld.
15 Purchased U.S. Savings Bonds for employees by writing check for $350.00.
17 Paid state income taxes withheld from employees.
20 Paid federal and state unemployment taxes.
31 Completed monthly payroll register, which shows office salaries $17,600, store wages $27,400, FICA taxes withheld $3,600, federal income taxes payable $1,770, state income
taxes payable $360, union dues payable $400, United Fund contributions payable
$1,800, and net pay $37,070.
31 Prepared payroll checks for the net pay and distributed checks to employees.
At January 31, the company also makes the following accrual for employer payroll taxes: FICA taxes 8%, state unemployment taxes 5.4%, and federal unemployment taxes 0.8%.
Instructions
(a) Journalize the January transactions.
(b) Journalize the adjustments pertaining to employee compensation at January 31.