The following payroll liability accounts are included in the ledger of Nordlund Company on January 1, 2011.
|
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 $21,600, store wages $28,400, FICA taxes withheld $4,000, federal income taxes payable $1,958, state income taxes payable $414, union dues payable $400, United Fund contributions payable $1,888, and net pay $41,340.
31 Prepared payroll checks for the net pay and distributed checks to employees.
At January 31, the company also makes the following accrued adjustment for employer payroll taxes: FICA taxes 8%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.
Instructions
(a) Journalize the January transactions.
(b) Journalize the adjustments pertaining to employee compensation at January 31.