Question

The following payroll liability accounts are included in the ledger of Harmon Company on January 1, 2017. FICA Taxes Payable $760 Federal Income Taxes Payable 1,210 State Income Taxes Payable 105 Federal Unemployment Taxes Payable 285 State Unemployment Taxes Payable 1,930 Union Dues Payable 855 U.S. Savings Bonds Payable 360 In January, the following transactions occurred. Jan. 10 Sent check for $855 to union treasurer for union dues. 12 Remitted check for $1,970.00 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 $360. 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 $54,000, FICA taxes withheld $4,131, federal income taxes payable $2,135, state income taxes payable $490, union dues payable $405, United Fund contributions payable $1,960, and net pay $44,879. 31 Prepared payroll checks for the net pay and distributed checks to employees. At January 31, the company also makes the following accrued adjustments pertaining to employee compensation. 1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%. 2. Vacation pay: 6% of gross earnings.

Journalize the January transactions. (Round answers to 2 decimal places, e.g. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Date	Accounts	Debit	Credit
10-Jan	Union Dues Payable	$         855
	Cash		$          855
12-Jan	FICA Taxes payable	$         760
	Federal Income Taxes Payable	$     1,210
	Cash		$      1,970
15-Jan	US Saving Bonds Payable	$         360
	Cash		$          360
17-Jan	State Income taxes payable	$         105
	Cash		$          105
20-Jan	Federal Unemployment Taxes payable	$         285
	State Unemployment Taxes payable	$     1,930
	Cash		$      2,215
31-Jan	Salaries & Wages expenses	$   54,000
	FICA Taxes payable		$      4,131
	Federal Income Taxes Payable		$      2,135
	State Income taxes Payable		$          490
	Union Dues payable		$          405
	United Fund Contribution payable		$      1,960
	Salaries & Wages payable		$    44,879
31-Jan	Salaries & Wages payable	$   44,879
	Cash		$    44,879
31-Jan	Payroll Tax expenses	$     7,479
	FICA Taxes payable		$      4,131
	Federal Unemployment Taxes payable (54000*.8%)		$          432
	State Unemployment Taxes payable (54000*5.4%)		$      2,916
31-Jan	Vacation and Holiday Expense	$     3,240
	Vacation and Holiday payable		$      3,240