The following payroll liability accounts are included in the ledger 164272

The following payroll liability accounts are included in the ledger of Milton’s Brewery and Grille on January 1, 2010:

FICA Taxes Payable .....................$ 662.20

Federal Income Taxes Payable .................1,254.60

State Income Taxes Payable ................... 102.15

Federal Unemployment Taxes Payable .............. 312.00

State Unemployment Taxes Payable ...............1,954.40

Union Dues Payable ...................... 250.00

U.S. Savings Bonds Payable .................. 350.00

In January, the following transactions occurred:

Jan.

10 ..Sent check for $250.00 to union treasurer for union dues.

12 ..Deposited check for $1,916.80 in Federal Reserve Bank for FICA taxes and federal income taxes withheld.

15 ..Purchased U.S. Savings Bonds for employees by writing check for $350.00

17 ..Paid state income taxes withheld from employees.

20 ..Paid federal and state unemployment taxes

31 ..Completed monthly payroll register, which shows office salaries $17,600; store wages $27,400; FICA taxes withheld $3,600; federal income taxes payable $1,770; state income taxes payable $360; union dues payable $400; United Fund contributions payable $1,800; and net pay $37,070.

31 ..Prepared payroll checks for the net pay, and distributed checks to employees.

On January 31, the company also makes the following accrual for employer payroll taxes: FICA taxes 8 percent, state unemployment taxes 5.4 percent, and federal unemployment taxes 0.8 percent.

(a) Journalize the January transactions.

(b) Journalize the adjustments pertaining to employee compensation at January 31.


Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Accounting Tutors
Ask questions directly from Qualified Online Accounting Tutors .
Best for online homework assistance.