Question

Problem 11-04A a-b (Part Level Submission) (Video) The following payroll liability accounts are included in the ledger of Crane 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 $700 1,180.00 100.00 275.00 1,930.00 800 300 In January, the following transactions occurred. Jan. 10 Sent check for $800 to union treasurer for union dues. 12 Remitted check for $1,880.00 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 $300. 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 $54,000, FICA taxes withheld $4,131, federal income taxes payable $1,800, state income taxes payable $350, union dues payable $350, United Fund contributions payable $1,750, and net pay $45,619. 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 employee compensation. 1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%. 2. Vacation pay: 6% of gross earnings.
Please try to keep the same format!

Answer 1

1. Jan 10  

Debit : Union dues payable $800

Credit : Bank A/c. $800

( Being cheque paid for liability of union dues payable )

2. Jan 10

Debit : FICA tax payable $700

Debit : Federal income taxes payable $1180

Credit : Bank account. $1880

( Being discharged liability of FICA taxes and Federal income taxes)

3. Jan 31

Debit : FICA tax liability $ 4131

Debit : Federal unemployment tax liability $432

Debit : State unemployment tax liability $2916

Credit : FICA tax payable. $4131

Credit : Federal unemployment tax liability Payable $432

Credit : State unemployment taxes Payable. $2916