Question

Officers' salaries $320,000 Sales salaries 670.000 Federal income taxes withheld 190.000 FICA taxes withheld 75,000 Health insurance premiums withheld 16.000 Union dues withheld 12.000 Salaries included above) subject to federal unemployment taxes 550,000 Salaries included above) subject to state unemployment taxes 600,000 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 06 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
Date	Description	Debit	Credit
a.
Apr. 30	Officers' salaries expense	320000
	Sales salaries expense	670000
	Federal income tax withholding payable		190000
	FICA tax payable		75000
	Health insurance premiums payable		16000
	Union dues payable		12000
	Payroll payable		697000
	To record April payroll.
b.
Apr. 30	Payroll payable	697000
	Cash		697000
	To pay net payroll for April.
c.
Apr. 30	Payroll tax expense	110700
	FICA tax payable		75000
	Federal unemployment tax payable (0.6% x $550000)		3300
	State unemployment tax payable (5.4% x $600000)		32400
	To record employer's April payroll taxes.
d.
Apr. 30	Federal income tax withholding payable	190000
	FICA tax payable ($75000 + $75000)	150000
	Health insurance premiums payable	16000
	Union dues payable	12000
	Federal unemployment tax payable	3300
	State unemployment tax payable	32400
	Cash		403700
	To pay liabilities related to April payroll.