ACC 201 Lecture Notes - Lecture 20: Zero-Coupon Bond, Promissory Note
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Apr. | 1. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during March. | |
15. | Payroll: $6,105. All wages and salaries taxable. Withheld $565 for federal income taxes, $107.32 for state income taxes, and $50 for union dues. | ||
15. | Paid the treasurer of the state the amount of state income taxes withheld from workers' earnings during the first quarter. | ||
15. | Electronically transferred funds to remove the liability for FICA taxes and employees' federal income taxes withheld on the March payrolls. | ||
29. | Payroll: $5,850. All wages and salaries taxable. Withheld $509 for federal income taxes, $128.90 for state income taxes, and $55 for union dues. | ||
29. | Filed the Employer's Quarterly Federal Tax Return (Form 941) for the period ended March 31. No journal entry is required, since the FICA taxes and federal income taxes withheld have been timely paid. | ||
29. | Filed the state contribution return for the quarter ended March 31 and paid the amount to the state unemployment compensation fund. | ||
May | 2. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during April. | |
13. | Payroll: $5,810. All wages and salaries taxable. Withheld $507 for federal income taxes, $125.05 for state income taxes, and $55 for union dues. | ||
16. | Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the April payrolls. | ||
31. | Payroll: $6,060. All wages and salaries taxable. Withheld $533 for federal income taxes, $119.00 for state income taxes, and $50 for union dues. | ||
June | 3. | Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May. | |
15. | Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues. | ||
15. | Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls. | ||
30. | Payroll: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues. |
The following are the account balances forwarded as of June 1:
(1) Union Due Payable: $105
(2) Employees SIT Payable: $480.27
(3) FICA Taxes Payable - OASDI: $1,471.88
(4) FICA Taxes Payable - HI: $344.24
(5) Employees FIT Payable: $1,040.00
(6) FUTA Taxes Payable: $292.11
(7) SUTA Taxes Payable: $547.98
(8) Cash: $31,805.77
(9) Wages and Salaries: $95,185.00
(10) Payroll taxes: $9,360.29
Note: The SUTA tax rate is 2.3%.
a. Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.
GENERAL JOURNAL | PAGE 21 | |||
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DATE | DESCRIPTION | DEBIT | CREDIT | |
20-- | ||||
Jun. 3 | ||||
Jun. 15-Payroll | ||||
Jun. 15-Taxes | ||||
Jun. 15-Federal Taxes | ||||
Jun. 30-Payroll | ||||
Jun. 30-Taxes | ||||
According to a summary of the payroll of Mountain Streaming Co., $720,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and federal unemployment taxes.
Required: | |
A. | Calculate the employerâs payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. |
B. | Journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles. |
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mountain Streaming Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Starting Question
a. Calculate the employerâs payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Journal
b. On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
5 |
On January 8, the end of the first weekly pay period of the
year, Royal Company's payroll register showed that itsemployees
earned $21,760 of office salaries and $60,840 of salessalaries.
Withholdings from the employees' salaries include FICASocial
Security taxes at the rate of 6.20%, FICA Medicare taxes atthe
rate of 1.45%, $13,560 of federal income taxes, $1,340 ofmedical
insurance deductions, and $880 of union dues. No employeeearned
more than $7,000 in this first period.
1.1 Calculate FICA Social Security taxes payable andFICA
Medicare taxes payable by the employees of RoyalCompany.
FICAââ¬âSocial sec. taxes payable | $ |
FICAââ¬âMedicaretaxes payable | $ |
1.2 | Prepare the journal entry to recordRoyal Company's January 8 (employee) payroll expenses andliabilities. (Roundyour answers to 2 decimal places. Omit the "$" sign in yourresponse.) |
Date | General Journal | Debit | Credit |
Jan. 8 | |||
2. | Prepare the journal entry to recordRoyal's (employer) payroll taxes resulting from the January 8payroll. Royal's merit rating reduces its state unemployment taxrate to 6% of the first $7,000 paid each employee. The federalunemployment tax rate is 0.8%. (Round your answers to 2decimal places. Omit the "$" sign in your response.) |
Date | General Journal | Debit | Credit |
Jan. 8 | |||