The following payroll liability accounts are included in the ledger of Armitage Company on January 1, 2010.
|
FICA Taxes Payable |
$760.00 |
|
Federal Income Taxes Payable |
1,204.60 |
|
State Income Taxes Payable |
108.95 |
|
Federal Unemployment Taxes Payable |
288.95 |
|
State Unemployment Taxes Payable |
1,954.40 |
|
Union Dues Payable |
870.00 |
|
U.S. Savings Bonds Payable |
360.00 |
In January, the following transactions occurred.
|
Jan. 10 |
Sent check for $870.00 to union treasurer for union dues. |
|
12 |
Deposited check for $1,964.60 in Federal Reserve bank for FICA taxes and federal income taxes withheld. |
|
15 |
Purchased U.S. Savings Bonds for employees by writing check for $360.00. |
|
17 |
Paid state income taxes withheld from employees. |
|
20 |
Paid federal and state unemployment taxes. |
|
31 |
Completed monthly payroll register, which shows office salaries $26,600, store wages $28,400, FICA taxes withheld $4,400, federal income taxes payable $2,158, state income taxes payable $454, union dues payable $400, United Fund contributions payable $1,888, and net pay $45,700. |
|
31 |
Prepared payroll checks for the net pay and distributed checks to employees. |
At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.
1. Employer payroll taxes: FICA taxes 8%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.
*2. Vacation pay: 6% of gross earnings.
Instructions
(a) Journalize the January transactions.
(b) Journalize the adjustments pertaining to employee compensation at January 31.