Question

P13.3 (LOI) (Payroll Tax Entries) Cedarville Company pays its orice employee payroll weekly. Below is a partial list of employees and their payron data for August. Because August is their vacation period, vacation pay is also listed Employee Mark Hamill Karen Robbins Brent Kirk Alec Guinness Ken Sprouse Earnings to July 31 Weekly Pay Vacation Pay to Be Received in August $4,200 $200 3.500 150 $300 2,700 110 220 7,400 250 8,000 330 660 Assume that the income tax withheld is 10% of wages, Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The Social Security rate is 8% on employee and employer. Instructions Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company's liability are made separately. Also make the entry to record the monthly payment of payroll liabilities.

Answer 1

Dear Student,

As per the HOMEWORKLIB POLICY, only the first question should be answered. Kindly take note of it. Each new question should be posted separately.

No.	Account titles and explanation	Debit	Credit
	Entries for Payroll 1
1	Wages and Salaries Expense	1040
	Withholding Taxes Payable (1040*10%)		104
	FICA Taxes Payable (1040*8%)		83.20
	Union Dues Payable (1040*2%)		20.80
	Cash		832
2	Payroll tax expense	110.80
	FICA Taxes Payable (1040*8%)		83.20
	Federal Unemployment Tax Payable ((200+150+110)*0.6%)		2.76
	State Unemployment Tax Payable ((200+150+110)*5.4%)		24.84
	Entries for Payroll 2 and 3
3	Vacation Wages Payable (300+220+660)/2	590
	Wages and Salaries Expense (1040-590)	450
	Withholding Taxes Payable (1040*10%)		104
	FICA Taxes Payable (1040*8%)		83.20
	Union Dues Payable (1040*2%)		20.80
	Cash		832
	Payroll tax expense	110.80
4	FICA Taxes Payable (1040*8%)		83.20
	Federal Unemployment Tax Payable ((200+150+110)*0.6%)		2.76
	State Unemployment Tax Payable ((200+150+110)*5.4%)		24.84
	Entries for Payroll 4
5	Wages and Salaries Expense	1040
	Withholding Taxes Payable		104
	FICA Taxes Payable		83.20
	Union Dues Payable		20.80
	Cash		832
6	Payroll tax expense	1040
	FICA taxes payable		83.20
	Federal Unemployment Tax Payable		2.76
	State Unemployment Tax Payable		24.84
	Monthly Payment of Payroll Liabilities
7	Withholding Taxes Payable (104*4)	416
	FICA Taxes Payable (83.20*8)	665.60
	Union Dues Payable (20.80*4)	83.20
	Federal Unemployment Tax Payable (2.76*4)	11.04
	State Unemployment Tax Payable (24.84*4)	99.36
	Cash		1257.20

$200 + $150 + $110 + $250 + $330 = $1,040