Question

P11-4B The following payroll liability accounts are included in the ledger of Patteri Company on January 1, 2012. FICA Taxes Payable $ 540 Federal Income Taxes Payable 1,100 State Income Taxes Payable 210 Federal Unemployment Taxes Payable 54 State Unemployment Taxes Payable 365 Union Dues Payable 200 U.S. Savings Bonds Payable 300 In January, the following transactions occurred. Sent check for $200 to union treasurer for union dues Jan. 10 12 Remitted check for $1,640 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. Purchased U.S. Savings Bonds for employees by writing check for $300. 15 Paid state income taxes withheld from employees. 17 Paid federal and state unemployment taxes. 20 31 Completed monthly payroll register, which shows offfice salaries $17,400, store wages $22,500, FICA taxes withheld $3,192, federal income taxes payable $2,540, state income taxes payable $500, union dues payable $300, United Fund contributions payable $1,300, and net pay $32,068. Prepared payroll checks for the net pay and distributed checks to employees. 31 At January 31, the company also makes the following accruals pertaining to employee compensation. Employer payroll taxes: FICA taxes 8 %, state unemployment taxes 5.4%, and federal 1. unemployment taxes 0.8 %. Vacation pay: 5% of gross earnings. 2. Instructions (a) Jounalize the January transactions. (b) Journalize the adjustments pertaining to employee compensation at January 31

Answer 1

(a)	Date	General Journal	Debit	Credit
	Jan. 10	Union dues payable	200
		Cash		200
		(To record payment of union dues)
	Jan. 12	FICA taxes payable	540
		Federal income taxes payable	1100
		Cash		1640
		(To record payment of FICA and federal income taxes)
	Jan. 15	U.S. Savings bonds payable	300
		Cash		300
		(To record purchase of bonds for employees)
	Jan. 17	State income taxes payable	210
		Cash		210
		(To record payment of state income taxes)
	Jan. 20	Federal unemployment taxes payable	54
		State unemployment taxes payable	365
		Cash		419
		(To record payment of unemployment taxes)
	Jan. 31	Office salaries expense	17400
		Store wages expense	22500
		FICA taxes payable		3192
		Federal income taxes payable		2540
		State income taxes payable		500
		Union dues payable		300
		United fund contributions payable		1300
		Salaries and wages payable		32068
		(To record salaries and wages expense)
	Jan. 31	Salaries and wages payable	32068
		Cash		32068
		(To record payment of net pay)
(b)	Date	General Journal	Debit	Credit
	Jan. 31	Payroll taxes expense	5665.80
		FICA taxes payable (8% x $39900)		3192.00
		State unemployment taxes payable (5.4% x $39900)		2154.60
		Federal unemployment taxes payable (0.8% x $39900)		319.20
		(To record employer's payroll tax expense)
	Jan. 31	Vacation wages expense (5% x $39900)	1995
		Vacation wages payable		1995
		(To record accrual of vacation pay)