Question

The following payroll liability accounts are included in the ledger of Vaughn Company on January 1, 2020. FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Union Dues Payable U.S. Savings Bonds Payable $730 1,205.00 105.00 280.00 1.940.00 865 400 In January, the following transactions occurred. Jan 10 Sent check for $865 to union treasurer for union dues. 12 Remitted check for $1.935.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. 15 Purchased U.S. Savings Bonds for employees by writing check for $400 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes 31 Completed monthly payroll register, which shows salaries and wages $66.000. FICA taxes withheld $5.049. federal income taxes payable $1.990. state income taxes payable 5485.union dues payable $410. United Fund contributions payable $1.840. and net pay $56,226 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 emplovee compensation Employer payroll taxes: FICA taxes 7.659. federal unemployment taxes 0.895 and state unemployment taxes 54% Vacation pay: 66 of gross earnings search o e a co w w 9 QL @ ^ 0 90 216/2000

Journalize the January transactions

Answer 1

Date	Accounts	Debit	Credit
10-Jan	Union Dues Payable	$ 865
	Cash		$ 865
12-Jan	FICA Taxes payable	$ 730
	Federal Income Taxes Payable	$ 1205
	Cash		$ 1935
15-Jan	US Saving Bonds Payable	$ 400
	Cash		$ 400
17-Jan	State Income taxes payable	$ 105
	Cash		$ 105
20-Jan	Federal Unemployment Taxes payable	$ 280
	State Unemployment Taxes payable	$ 1940
	Cash		$ 2220
31-Jan	Salaries & Wages expenses	$ 66,000
	FICA Taxes payable		$ 5049
	Federal Income Taxes Payable		$ 1990
	State Income taxes Payable		$ 485
	Union Dues payable		$ 410
	United Fund Contribution payable		$ 1840
	Salaries & Wages payable		$ 56226
31-Jan	Salaries & Wages payable	$ 56226
	Cash		$ 56226
31-Jan	Payroll Tax expenses	$9,141
	FICA Taxes payable		$ 5049
	Federal Unemployment Taxes payable (66000* 0.8%)		$ 528
	State Unemployment Taxes payable (66000*5.4%)		$ 3,564
31-Jan	Vacation and Holiday Expense (66000*6%)	$ 3,960
	Vacation and Holiday payable		$ 3,960