Question

Aceftted Payroll and Payroll Taxes Joey Department Store's employees are paid on the 6th and 22nd of each month for the period ending the last day of the previous month and the 15th of the current month, respectively. An analysis of the payroll on Monday, October 6, 2,013, revealed the following data. Federal Income Tax State Income Gross Pay Net Insurance FICA Tax .. $ 450 $11,380 Office staff salaries.... Officer salaries Sales salaries $ 810 286 $15,450 31,000 20,000 $66,450 $ 2,400 6,300 4,200 $12.900 410 500 480 $1.390 1.000 690 $2.140 834 22.914 13.796 $48.090 Totals $1.930 It is determined that for the September 30 pay period, no additional employees exceeded the wage base for FICA purposes than had done so in prior pay periods. All of the officer salaries 75% of the office staff salaries, and 40% of the sales salaries for the payroll period ending September 30 were paid to employees who had exceeded the wage base for unemployment taxes. Assume the unemployment tax rates in force are as follows: federal unemployment tax. 0.8%, and state unemployment tax, 5.4%. Prepare the adjusting entries that would be required at September 30, the end of Joey's fiscal year, to reflect the accrual of the payroll and any related payroll taxes. Separate salaries and payroll tax expense accounts are used for each of the three employee categories: office staff, officer, and sales. Round your answers to the nearest cent. 2.013 Sept. 30 LILIT

Answer 1

ANSWER

Date	Accounts Title	Dr	Cr
30-Sep	Office staff salaries expenses	$15,450
	Officer salaries expenses	31,000
	Sales salaries expenses	$20,000
	FICA taxes payable		$1,930
	Federal Income taxes payable		12900
	State Income Tax payable		2140
	Insurance premium payable		1390
	Salaries & Wages payable		$48,090
30-Sep	Payroll Tax expenses	$5,917.00
	FICA taxes payable		$1,930
	Federal unemployment taxes payable		398.70
	State unemployment taxes payable		3588.30
	(being payroll tax expenses recorded)
6-Oct	Salaries & Wages payable	36967.40
	Cash		36967.40
	22914+(11380*.75)+(13796*.4)
	(being payroll paid recorded)
If totally seperate accounts are used
30-Sep	Office staff salaries expenses	$15,450
	Officer salaries expenses	31,000
	Sales salaries expenses	$20,000
	FICA taxes payable		$1,930
	Federal Income taxes payable		12900
	State Income Tax payable		2140
	Insurance premium payable		1390
	Office staff salaries payable		$11,380
	Officer salaries payable		22914
	Sales salaries payable		13796
30-Sep	Payroll Tax expenses	$5,917.00
	FICA taxes payable		$1,930
	Federal unemployment taxes payable		398.70
	State unemployment taxes payable		3588.30
	(being payroll tax expenses recorded)
6-Oct	Office staff salaries payable	8535.00
	Officer salaries payable	22914.00
	Sales salaries payable	5518.40
	Cash		36967.40
	(being payroll paid recorded)

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