journalize the adjustments pertaining to employee compensation at january 31 618506
The following payroll liability accounts are included in the ledger of Grandon Company on January 1, 2014.
|
FICA Taxes Payable |
$540 |
|
Federal Income Taxes Payable |
1,100 |
|
State Income Taxes Payable |
210 |
|
Federal Unemployment Taxes Payable |
54 |
|
State Unemployment Taxes Payable |
365 |
|
Union Dues Payable |
200 |
|
U.S. Savings Bonds Payable |
300 |
In January, the following transactions occurred.
|
10 |
Sent check for $200 to union treasurer for union dues. |
|
|
12 |
Remitted check for $1,640 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. |
|
|
15 |
Purchased U.S. Savings Bonds for employees by writing check for $300. |
|
|
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 $42,000, FICA taxes withheld $3,213, federal income taxes payable $2,540, state income taxes payable $500, union dues payable $300, United Fund contributions payable $1,300, and net pay $34,147. |
|
|
31 |
Prepared payroll checks for the net pay and distributed checks to employees. |
At January 31, the company also makes the following accruals pertaining to employee compensation.
- Employer payroll taxes: FICA taxes 7.65%, state unemployment taxes 5.4%, and federal unemployment taxes 0.8%.
- Vacation pay: 5% of gross earnings.
Instructions
(a)Journalize the January transactions.
(b)Journalize the adjustments pertaining to employee compensation at January 31.