Question

Beamon Corporation had the following payroll for April: Officers' salaries $34,000 Sales salaries 67,000 Federal income taxes withheld 19,000 FICA taxes withheld 7,500 Health insurance premiums withheld 1,800 Union dues withheld 1,200 Salaries (included above) subject to federal unemployment taxes 55,000 Salaries (included above) subject to state unemployment taxes 58,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal unemployment tax is 0.6 percent, and the state unemployment tax is 5.4 percent.) d. Payment of all liabilities related to this payroll. (Assume that all are settled at the same time.)

Answer 1

a	April 30	Officers' salaries expense	34000
		Sales salaries expense	67000
		Federal income tax withholding payable		19000
		FICA tax payable		7500
		Health Insurance Premium payable		1800
		Union dues payable		1200
		Payroll payable		71500
b	April 30	Payroll payable	71500
		Cash		71500
c	April 30	Payroll tax expense	10962
		FICA tax payable		7500
		Federal unemployment tax payable		330	=55000*0.6%
		State unemployment tax payable		3132	=58000*5.4%
d	April 30	Federal income tax withholding payable	19000
		FICA tax payable	15000
		Health insurance premium payable	1800
		Union dues payable	1200
		Federal unemployment tax payable	330
		State Unemployment tax payable	3132
		Cash		40462