The following payroll liability accounts are included in the ledger of Marcus Company on January 1, 2017.
FICA Taxes Payable...................................$ 760.00
Federal Income Taxes Payable........................1,204.60
State Income Taxes Payable.............................108.95
Federal Unemployment Taxes Payable................288.95
State Unemployment Taxes Payable.................1,954.40
Union Dues Payable......................................740.00
U.S. Savings Bonds Payable............................360.00
In January, the following transactions occurred.
Jan. 10 Sent check for $740.00 to union treasurer for union dues.
12 Deposited check for $1,964.60 in Federal Reserve bank for FICA taxes and federal income taxes withheld.
15 Purchased U.S. Savings Bonds for employees by writing check for $360.00.
17 Paid state income taxes withheld from employees.
20 Paid federal and state unemployment taxes.
31 Completed monthly payroll register, which shows salaries and wages $50,600, FICA taxes withheld $3,871, federal income taxes payable $1,958, state income taxes payable $414, union dues payable $400, United Fund contributions payable $1,888, and net pay $42,069.
31 Prepared payroll checks for the net pay and distributed checks to employees.
At January 31, the company also makes the following accrued adjustment for employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.
Instructions
(a) Journalize the January transactions.
(b) Journalize the adjustments pertaining to employee compensation at January 31.