Question

Recording Payroll and Payroll Taxes Beamon Corporation had the following payroll for April: Officers' salaries Sales salaries Federal income taxes withheld FICA taxes withheld Health insurance premiums withheld Union dues withheld Salarles (Included above) subject to federal unemployment taxes Salaries (included above) subject to state unemployment taxes $34,000 67,000 19,000 7.500 1.800 1.200 55.000 58.000 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.) General Journal Description Date Debit Credit $ $ 34,000 67.000 0 Apr 30 Officers' Salaries Expense # Sales Salaries Expense Sales Salaries Expense FICA Tax Payable Health Insurance Premiums Payable Union Dues Payable Payroll Payable To record April payroll 71,500 x 7,500 1,800 1.200 19.000 x * Apr.30 State Unemployment Tax Paya • Cash To pay net payroll for April 71,500 0 0 71,500 10,962 Apr.30 Payroll Payable FICA Tax Payable Federal Unemployment Tax F State Unemployment Tax Payable To record employer's April payroll taxes. 7,500 330 3.132 Apr.30 Federal Income Tax Withholding Payable FICA Tax Payable Health Insurance Premiums Pa ✓ Union Dues Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Cash To pay liabilities related to April payroll. 19,000 15,000 1.800 1.200 330 3,132 40,462

Answer 1

Debit Credit $34,000 $67,000 General Journal Date Accounts and Explanation (a) Apr. 30 Officer's salaries expenses Sales salaries expense To Federal Income tax withholding payable To FICA Tax payable To Health insurance premium payable To Union dues payable To Payroll payable (To record April payroll) $19,000 $7,500 $1,800 $1,200 $71,500 $71,500 (b)| Apr. 30 Payroll payable To Cash (To pay net payroll of April) $71,500 $10,962 (c) Apr. 30 Payroll tax expense TO FICA Tax payable To Federal unemployment tax payable To State unemployment tax payable (To record employer's April payroll taxes) $7,500 $330 $3,132 (d) Apr. 30 Federal Income tax withholding payable FICA Tax payable Health insurance premium payable Union dues payable Funemployment tax payable State unemployment tax payable To Cash |(To pay liabilities related to April payroll) $19,000 $15,000 $1,800 $1,200 $330 $3,132 $40,462