Question

Officers' salaries Sales salaries Federal income taxes withheld FICA taxes withheld Health insurance premiums withheld Union dues withheld Salaries (included above) subject to federal unemployment taxes Salaries (included above) subject to state unemployment taxes $36.000 70,000 22,000 10.500 1.900 1.500 58,000 63,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal unemployment tax is 0.6 percent, and the state unemployment tax is 5.4 percent.) d. Payment of all liabilities related to this payroll. (Assume that all are settled at the same time.)

Answer 1

General Journal
Event	Date	Description	Debit	Credit
a	Apr.30	Office Salaries Expense	$        36,000
		Sales Salaries Expense	$        70,000
		Federal income taxes withheld payable		$        22,000
		FICA Tax payable		$        10,500
		Health insurance premiums payable		$          1,900
		Union dues payable		$          1,500
		Salaries Payable or Payroll Payable                              (36000+70000-22000-10500-1900-1500)		$        70,100
		To record April Payroll.
b	Apr.30	Salaries Payable or Payroll Payable	$        70,100
		Cash		$        70,100
		To record net payroll for April.
c	Apr.30	Payroll Taxes expense	$        14,250
		FICA Tax payable		$        10,500
		Federal unemployment tax payable (58000*0.6%)		$              348
		State unemployment tax payable (63000*5.4%)		$          3,402
		To record employer's April payroll taxes.
d	Apr.30	Federal income taxes withheld payable	$        22,000
		FICA Tax payable (10500+10500)	$        21,000
		Health insurance premiums payable	$          1,900
		Union dues payable	$          1,500
		Federal unemployment tax payable	$              348
		State unemployment tax payable	$          3,402
		Cash		$        50,150
		To record paid the liabilities related to the April payroll.