Takei Company's payroll for the week ending January 15 amounted to $367,000 for salaries and wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following deductions were withheld from employees' salaries and wages: Federal Income Tax $75,000 State Income Tax 13,500 FICA Taxes 28,075 Union Dues 4,100 United Fund Contributions 2,700 Federal unemployment tax (FUTA) rate is 6.2% less a credit equal to the rate paid for state unemployment taxes. The state unemployment tax (SUTA) rate is 5.4%.
Takei Company's payroll for the week ending January 15 amounted to $367,000 for salaries and wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following deductions were withheld from employees' salaries and wages: Federal Income Tax $75,000 State Income Tax 13,500 FICA Taxes 28,075 Union Dues 4,100 United Fund Contributions 2,700 Federal unemployment tax (FUTA) rate is 6.2% less a credit equal to the rate paid for state unemployment taxes. The state unemployment tax (SUTA) rate is 5.4%.
Related questions
| 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 | |||
|---|---|---|---|---|
| DATE | DESCRIPTION | DEBIT | CREDIT | |
| 20-- | ||||
| Jun. 3 | ||||
| Jun. 15-Payroll | ||||
| Jun. 15-Taxes | ||||
| Jun. 15-Federal Taxes | ||||
| Jun. 30-Payroll | ||||
| Jun. 30-Taxes | ||||
| 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 | |||
|---|---|---|---|---|
| DATE | DESCRIPTION | DEBIT | CREDIT | |
| 20-- | ||||
| Jun. 3 | Union Dues Payable | |||
| Cash | ||||
| Jun. 15-Payroll | Wages and Salaries | |||
| FICA Taxes Payable-OASDI | ||||
| FICA Taxes Payable-HI | ||||
| Employees FIT Payable | ||||
| Employees SIT Payable | ||||
| Union Dues Payable | ||||
| Cash | ||||
| Jun. 15-Taxes | Payroll Taxes | |||
| FICA Taxes Payable-OASDI | ||||
| FICA Taxes Payable-HI | ||||
| FUTA Taxes Payable | ||||
| SUTA Taxes Payable | ||||
| Jun. 15-Federal Taxes | FICA Taxes Payable-OASDI | |||
| FICA Taxes Payable-HI | ||||
| Employees FIT Payable | ||||
| Cash | ||||
| Jun. 30-Payroll | Wages and Salaries | |||
| FICA Taxes Payable-OASDI | ||||
| FICA Taxes Payable-HI | ||||
| Employees FIT Payable | ||||
| Employees SIT Payable | ||||
| Union Dues Payable | ||||
| Cash | ||||
| Jun. 30-Taxes | Payroll Taxes | |||
| FICA Taxes Payable-OASDI | ||||
| FICA Taxes Payable-HI | ||||
| FUTA Taxes Payable | ||||
| SUTA Taxes Payable | ||||
b. Post the June journal entries in chronological order to the general ledger accounts in the attached spreadsheet. When finished, enter the final June 30 balance of each account below.
| 1. Cash | $ |
| 2. FICA Taxes Payable-OASDI | $ |
| 3. FICA Taxes Payable-HI | $ |
| 4. FUTA Taxes Payable | $ |
| 5. SUTA Taxes Payable | $ |
| 6. Employees FIT Payable | $ |
| 7. Employees SIT Payable | $ |
| 8. Union Dues Payable | $ |
| 9. Wages and Salaries | $ |
| 10. Payroll Taxes | $ |
c. Answer the following questions:
Enter your answers to the nearest cent. If an amount is zero, enter "0".
1. The total amount of the liability for FICA taxes and federal income taxes withheld as of June 30 is:
$
2. The total amount of the liability for state income taxes withheld as of June 30 is:
$
3. The amount of FUTA taxes that must be paid to the federal government on or before August 1 (July 31 is a Sunday) is:
$
4. The amount of contributions that must be paid into the state unemployment compensation fund on or before August 1 is:
$
5. The total amount due the treasurer of the union is:
$
6. The total amount of wages and salaries expense since the beginning of the fiscal year is:
$
7. The total amount of payroll taxes expense since the beginning of the fiscal year is:
$
8. Using the partial journal below, journalize the entry to record the vacation accrual at the end of the company's fiscal year. The amount of Brookins Company's vacation accrual for the fiscal year is $15,000.
| Account | Debit | Credit |
|---|---|---|
| Vacation Benefits Expense | ||
| Vacation Benefits Payable |
