Question

In the Illustrative Case in this chapter, payroll transactions for Brookins Company were analyzed, journalized, and posted for the third quarter of the fiscal year. In this problem, you are to record the payroll transactions for the last quarter of the firm's fiscal year. The last quarter begins on April 1, 20--.

Narrative of Transactions:
Apr.	1.		Paid the treasurer of the union the amount of union dues withheld from workers' earnings during March.
	15.		Payroll: $6,105. All wages and salaries taxable. Withheld $565 for federal income taxes, $107.32 for state income taxes, and $50 for union dues.
	15.		Paid the treasurer of the state the amount of state income taxes withheld from workers' earnings during the first quarter.
	15.		Electronically transferred funds to remove the liability for FICA taxes and employees' federal income taxes withheld on the March payrolls.
	29.		Payroll: $5,850. All wages and salaries taxable. Withheld $509 for federal income taxes, $128.90 for state income taxes, and $55 for union dues.
	29.		Filed the Employer's Quarterly Federal Tax Return (Form 941) for the period ended March 31. No journal entry is required, since the FICA taxes and federal income taxes withheld have been timely paid.
	29.		Filed the state contribution return for the quarter ended March 31 and paid the amount to the state unemployment compensation fund.
May	2.		Paid the treasurer of the union the amount of union dues withheld from workers' earnings during April.
	13.		Payroll: $5,810. All wages and salaries taxable. Withheld $507 for federal income taxes, $125.05 for state income taxes, and $55 for union dues.
	16.		Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the April payrolls.
	31.		Payroll: $6,060. All wages and salaries taxable. Withheld $533 for federal income taxes, $119.00 for state income taxes, and $50 for union dues.
June	3.		Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May.
	15.		Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues.
	15.		Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls.
	30.		Payroll: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues.

The following are the account balances forwarded as of April 1:
(1) Union Due Payable: $100
(2) Employees SIT Payable: $546.92
(3) FICA Taxes Payable - OASDI: $1,068.88
(4) FICA Taxes Payable - HI: $249.98
(5) Employees FIT Payable: $1,124.00
(6) FUTA Taxes Payable: $149.16
(7) SUTA Taxes Payable: $571.78
(8) Cash: $57,673.56
(9) Wages and Salaries: $71,360.00
(10) Payroll taxes: $6,846.74

Note: The SUTA tax rate is 2.3%.

Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank or enter "0". If required, round your answers to the nearest cent.

Answer 1

	Journal Entry's for the month of April
Sr.No.	Purticuler's	Debit	Credit
1	Union dues payable A/c.....................Dr	$100
	To Cash		$100
	(Being union dues payable for the month of march paid)
2	Wages & Salaries A/c.........................Dr	$6105
	Federal income Taxes payable		$565
	State Income taxes payable		$107.32
	Union Dues payable		$50
	Wages & Salaries Payable A/c		$5382.68
	(Being wages and salaries payable for the month of April)

Sr.No.	Purticulers	Debit	Credit
3	FICA Taxes Payable .................Dr	0
	Federal Income taxes Payable............Dr	$1074
	To Bank Account		$1074
	(Being FICA And SIT Liability paid For the month of April)
4	Wages & Salaries A/c.........................Dr	$6060
	Federal Income taxes payable		$533
	State Income taxes payable		$119
	Union Dues Payable		$50
	Wages & Salaries payable A/c		$5358
	(Being Wages and salaries payable for the month of May)

	Journal Entry's for the month of June
Sr.No.	Purticuler's	Debit	Credit
1	Union dues payable A/c.....................Dr	$95
	To Cash		$95
	(Being union dues payable for the month of May, paid)
2	Wages & Salaries A/c.........................Dr	$6380
	Federal income Taxes payable		$549
	State Income taxes payable		$128.70
	Union Dues payable		$50
	Wages & Salaries Payable A/c		$5652.30
	(Being wages and salaries payable for the month of June)

Sr.No	Purticulers	Debit	Credit
3	FICA Taxes Payable .................Dr	0
	Federal Income taxes Payable............Dr	$1040
	To Bank Account		$1040
	(Being FICA And SIT Liability paid For the month of May)
4	wages & Salaries Expenses	$6250
	To federal Income tax payable		$538
	To State Income tax Payable		$127.6
	To Union Dues		$50
	To wages & Salaries Payable		$5534.4