The following payroll liability accounts are included in the ledger of Milton’s Brewery and Grille on January 1, 2010:
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. |
On January 31, the company also makes the following accrual for employer payroll taxes: FICA taxes 8 percent, tare unemployment taxes 5.4 percent, and federal unemployment taxes 0.8 percent.
Instructions
(a) Journalize the January transactions.
(b) Journalize the adjustments pertaining to employee compensation at January 31.