Problem 25-4: Prepare payroll entries.

Prepare entries for the Volk Company in general journal form for each of the following transactions. The company has five employees, earning $2,000 each per month, for total salaries of $10,000 per month.

January 1 The company paid a $300 premium for workers' (workmen's) compensation insurance for January.

January 31 The company recorded the payroll for the month of January. Gross wages were $10,000, the FICA OASDI tax deduction was $620, the FICA HI tax deduction was $145, federal income tax withheld (FIT) was $2,000.

January 31 The company recorded the payment of the January payroll.

January 31 The company recorded the employers payroll tax expense for January.

February 1 The company paid a $300 premium for workers' (workmen's) compensation insurance for February.

February 28 The company recorded the payroll for the month of February. Gross wages were $10,000, the FICA OASDI tax deduction was $620, the FICA HI tax deduction was $145, federal income tax withheld (FIT) was $2,000.

February 28 The company recorded the payment of the February payroll.

February 28 The company recorded the employers payroll tax expense for February.

March 1 The company paid a $300 premium for workers' (workmen's) compensation insurance for March.

March 31 The company recorded the payroll for the month of March. Gross wages were $10,000, the FICA OASDI tax deduction was $620, the FICA HI tax deduction was $145, federal income tax withheld (FIT) was $2,000.

March 31 The company recorded the payment of the March payroll.

March 31 The company recorded the employers payroll tax expense for March.

After posting these entries for January through March, on March 31, at the end of the first quarter, the balances of the following accounts were:

• $3,720 for FICA OASDI tax (employee and employer shares)
• $870 for FICA HI tax (employee and employer shares)
• $6,000 for employees FIT
• $1,620 for SUTA tax
• $180 for FUTA tax

April 10 The company deposited the FICA and FIT taxes owed for the first quarter in an authorized commercial bank with Form 501

April 12 The company paid the first quarter SUTA taxes with the state form.

April 15 The company deposited the first quarter FUTA taxes in an authorized commercial bank with Form 508.

GENERAL JOURNAL Page 1
DATE		ACCOUNTS AND EXPLANATION	REF.	DEBIT	CREDIT
Jan.	1
		Paid workers compensation for January
	31
		Recorded payroll for January
	31
		Paid payroll for January
	31
		Recorded employers payroll tax expense for January
Feb.	1
		Paid workers compensation for February
	28
		Recorded payroll for February
	28
		Paid payroll for February