Francisco Company has 20 employees, each of whom earns $2,800 per month and is paid on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Francisco Company has 20 employees, each of whom earns $2,800 per month and is paid on the last day of each month. All 20 have been employed continuously at this amount since January 1. On March 1, the following accounts and balances exist in its general ledger. a. FICA-Social Security Taxes Payable, $6,944; FICA-Medicare Taxes Payable, $1,624. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.) b. Employees' Federal Income Taxes Payable, $14,000 (liability for February only). c. Federal Unemployment Taxes Payable, $672 (liability for January and February together). d. State Unemployment Taxes Payable, $6,048 (liability for January and February together). The company had the following payroll transactions. Mar. 15 Issued check payable to Swift Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and employee income tax withholdings. The $22,568 check is in payment of the February FICA and employee income taxes. 31 Recorded the journal entry for the March salaries payable. Then recorded the cash payment of the March payroll (the company issued checks payable to each employee in payment of the March payroll). The payroll register shows the following summary totals for the March pay period. Salaries Office Salaries $22,400 Shop Salaries $33,600 FICA Taxes* $ 3,472 $ 812 Federal Income Taxes $14,000 Gross Net Pay $56,000 Pay $37,716 * FICA taxes are Social Security and Medicare, respectively. 31 Recorded the employer's payroll taxes resulting from the March payroll. The company has a state unemployment tax rate of 5.40% on the first $7,000 paid to each employee. The federal rate is 0.60%. Apr. 15 Issued check to Swift Bank in payment of the March FICA and employee income taxes. 15 Issued check to the State Tax Commission for the January, February, and March state unemployment taxes. Filed the check and the first-quarter tax return with the Commission. 30 Issued check payable to Swift Bank in payment of the employer's FUTA taxes for the first quarter of the year. 30 Filed Form 941 with the IRS, reporting the FICA taxes and the employees' federal income tax withholdings for the first quarter. Journal entry worksheet 1 4 7 8 Record the cash payment of FICA (employees' and employer's) and employee income taxes of the month of February. Note: Enter debits before credits. Date General Journal Debit Credit Mar 15 Journal entry worksheet 6 7 8 1 3 4 Record the (employee) payroll expenses and liabilities for the month of March. Note: Enter debits before credits. Date General Journal Debit Credit Mar 31 LO Journal entry worksheet 1 2 3 4 6 7 8 <> Record the payment of payroll for March. Note: Enter debits before credits. Date General Journal Debit Credit Mar 31 LO Journal entry worksheet 2 3 4 5 6 7 8 Record the employer's payroll expenses and liabilities for the month of March. Note: Enter debits before credits. Date General Journal Debit Credit Mar 31 Journal entry worksheet 1 2 3 4 6 7 8 > Record the cash payment of FICA (employees' and employer's) and employee income taxes of the month of March. Note: Enter debits before credits. Date General Journal Debit Credit Apr 15 LO Journal entry worksheet く1 > 2 3 4 5 8. Record the cash payment of SUTA taxes for the months of January, February and March. Note: Enter debits before credits. Date General Journal Debit Credit Apr 15 Journal entry worksheet 1 2 3 4 6 7 8 > Record the cash payment of FUTA taxes for the first quarter of the year. Note: Enter debits before credits. Date General Journal Debit Credit Apr 30 LO Journal entry worksheet 1 2 3 4 6 7 <> Record the filing of Form 941with the IRS, reporting the FICA taxes and the employees' federal income tax withholdings for the first quarter. Note: Enter debits before credits. Date General Journal Debit Credit Apr 30 LO Francisco Company has 20 employees, each of whom earns $2,800 per month and is paid on the last day of each month. All 20 have been employed continuously at this amount since January 1. On March 1, the following accounts and balances exist in its general ledger. a. FICA-Social Security Taxes Payable, $6,944; FICA-Medicare Taxes Payable, $1,624. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.) b. Employees' Federal Income Taxes Payable, $14,000 (liability for February only). c. Federal Unemployment Taxes Payable, $672 (liability for January and February together). d. State Unemployment Taxes Payable, $6,048 (liability for January and February together). The company had the following payroll transactions. Mar. 15 Issued check payable to Swift Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and employee income tax withholdings. The $22,568 check is in payment of the February FICA and employee income taxes. 31 Recorded the journal entry for the March salaries payable. Then recorded the cash payment of the March payroll (the company issued checks payable to each employee in payment of the March payroll). The payroll register shows the following summary totals for the March pay period. Salaries Office Salaries $22,400 Shop Salaries $33,600 FICA Taxes* $ 3,472 $ 812 Federal Income Taxes $14,000 Gross Net Pay $56,000 Pay $37,716 * FICA taxes are Social Security and Medicare, respectively. 31 Recorded the employer's payroll taxes resulting from the March payroll. The company has a state unemployment tax rate of 5.40% on the first $7,000 paid to each employee. The federal rate is 0.60%. Apr. 15 Issued check to Swift Bank in payment of the March FICA and employee income taxes. 15 Issued check to the State Tax Commission for the January, February, and March state unemployment taxes. Filed the check and the first-quarter tax return with the Commission. 30 Issued check payable to Swift Bank in payment of the employer's FUTA taxes for the first quarter of the year. 30 Filed Form 941 with the IRS, reporting the FICA taxes and the employees' federal income tax withholdings for the first quarter. Journal entry worksheet 1 4 7 8 Record the cash payment of FICA (employees' and employer's) and employee income taxes of the month of February. Note: Enter debits before credits. Date General Journal Debit Credit Mar 15 Journal entry worksheet 6 7 8 1 3 4 Record the (employee) payroll expenses and liabilities for the month of March. Note: Enter debits before credits. Date General Journal Debit Credit Mar 31 LO Journal entry worksheet 1 2 3 4 6 7 8 <> Record the payment of payroll for March. Note: Enter debits before credits. Date General Journal Debit Credit Mar 31 LO Journal entry worksheet 2 3 4 5 6 7 8 Record the employer's payroll expenses and liabilities for the month of March. Note: Enter debits before credits. Date General Journal Debit Credit Mar 31 Journal entry worksheet 1 2 3 4 6 7 8 > Record the cash payment of FICA (employees' and employer's) and employee income taxes of the month of March. Note: Enter debits before credits. Date General Journal Debit Credit Apr 15 LO Journal entry worksheet く1 > 2 3 4 5 8. Record the cash payment of SUTA taxes for the months of January, February and March. Note: Enter debits before credits. Date General Journal Debit Credit Apr 15 Journal entry worksheet 1 2 3 4 6 7 8 > Record the cash payment of FUTA taxes for the first quarter of the year. Note: Enter debits before credits. Date General Journal Debit Credit Apr 30 LO Journal entry worksheet 1 2 3 4 6 7 <> Record the filing of Form 941with the IRS, reporting the FICA taxes and the employees' federal income tax withholdings for the first quarter. Note: Enter debits before credits. Date General Journal Debit Credit Apr 30 LO
Expert Answer:
Related Book For
Statistics The Art and Science of Learning from Data
ISBN: 978-0321997838
4th edition
Authors: Alan Agresti, Christine A. Franklin, Bernhard Klingenberg
Posted Date:
Students also viewed these accounting questions
-
Determine CPI, ETC (1), and EAC. Activity Total PV 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 6 6 2 20 10 10 3 30 9 6 6 6 3 4 20 8 2 5 5 5 16 4 4 4 4 6 18 9 9 7 8 4 4 Status Report: Ending Period 5 Task %...
-
(1) Given A and i. (1a) Find the equivalent amount at the end of year 1. (1b) Find the equilvalent amount at the end of year B. (2) Given X and i, Find the annual equivalent A from year S to 8. *...
-
Allergan is a major pharmaceutical firm. You work for Allergan's CFO and are evaluating a major and expensive drug trial. The drug trial would require an investment of $95 million today If the trial...
-
One joule of work is done on a system, raising its temperature by one degree centigrade. Can this increase in temperature be harnessed to do one joule of work? Explain.
-
According to a recent Current Population Reports, the population distribution of number of years of education for self-employed individuals in the United States has a mean of 13.6 and a standard...
-
The following is a list of transactions which relate to Ivan for the first month that he is in business: 1.9.07 2.9.07 3.9.07 10.9.07 12.9.07 15.9.07 20.9.07 Started the business with 10 000 in cash....
-
It is desired to find the value f0.99 for an F10,5 distribution. Use Table A.5 and the F5,10 distribution to find this value. Table A.5 Critical Values for the F Distribution Area Denominator Degrees...
-
Cortez Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Instructions(a) Determine the ending inventory under a...
-
If a company invests $100,000 in equipment which is expected to generate $35,195 in cash flows savings for three years, the internal rate of return (IRR) will be closest to
-
Mogoul Manufacturing Company makes two different products, M and N. The companys two departments are named after the products; for example, Product M is made in Department M. Mogouls accountant has...
-
Joe Speed is retiring this year at his Full Retirement Age (FRA) for receiving Social Security. Joe can begin to collect $30,000 per year this year. However, he read that he can wait for up to 4...
-
Why is U.S. Treasury debt considered risk free? Describe the possibility of default risk associated with Treasury debt.
-
What health care protection does the COBRA law provide?
-
To collect original data, when might you conduct an interview, and when might you use a questionnaire? What are their relative advantages?
-
When shopping for an individual health insurance policy, what factors should you compare?
-
List and explain the five disadvantages of mutual funds.
-
What has been the most impactful aspect of the BSHRM program for you? How will you use the skills gained in this program and course in your future career? How can these skills assist you in an HR...
-
X-1 Find the domain of the function f(x) : x 1 2 - O (-00, -1) U (-1, ) O (-00, 1) U (1, ) O -00, -1) U (-1, 1) U (1, 0) O (- 1, 1)
-
Repeat the previous exercise using x = percent with at least a high school education. This shows that an outlier is not especially influential if its x-value is not relatively large or small. Repeat...
-
The histogram shows the distribution of the damage (in billion dollars) of the 30 most costly hurricanes hitting the U.S. mainland between 1900 and 2010. (Numbers are inflation adjusted and in 2010...
-
Exercise 9.34 concerned an industrial plant that may be exceeding pollution limits. An environmental action group took four readings to analyze whether the true mean discharge of wastewater per hour...
-
Showbiz Sportswear completed the following selected transactions during 2008 and 2009: Requirements 1. Open general ledger accounts for Allowance for Uncollectible Accounts and Uncollectible-Account...
-
On February 28, Tradewinds Sailing Supplies had a \(\$ 75,000\) debit balance in Accounts Receivable and a \(\$ 2,200\) credit balance in Allowance for Uncollectible Accounts. During March,...
-
At September 30, the accounts of Aguilar Outsourcing Solutions include the following: During the last quarter of 2009, Aguilar completed the following selected transactions: Requirements 1. Record...
Study smarter with the SolutionInn App