Question

            5.   On June 16, 20X2, the accountant for D & S Lighting deposited the following taxes in a local bank to pay the government:

Employees’ federal income tax withheld	$695
FICA—SOCIAL SECURITY tax (employees’ share)	214
FICA—SOCIAL SECURITY tax (employer’s share)	214
FICA—Medicare tax (employees’ share)	71
FICA—Medicare tax (employer’s share)	71

Prepare the general journal entry to record the payment (deposit) of these taxes to the federal government. (4 pts)

General Journal

	Debit	Credit

6. Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of the year.

Required:

1. Calculate the estimated cost of workers' compensation insurance for the year. (2 pts)

2. Show the journal entry for the payment on January 2, 20--. (2 pts)

	Debit	Credit

3. Assume Ryan's actual payroll for the year was $89,000. Calculate the additional premium owed for 20--. and record the adjustment needed on December 31, 20—to show the additional amount owed. (2 pts)

	Debit	Credit

Answer 1

Question No:-1 (No.5 per screen above):-

The journal entry to record the payment of taxes is :-

	Particulars	Amount	Amount
June 16, 20X2	FICA Social security tax(employee share) Payable	214
	FICA Social security tax(employer share) Payable	214
	FICA Medicare tax(employee share) Payable	71
	FICA Medicare tax(employer share) Payable	71
	Employee federal income tax withheld	695
	To Cash A/c		1,265
	(To record the payment of taxes withheld)

Initially, The journal entry to record the taxes payable would have been a credit to all the taxes payable while the payment entry would be a debit to all the payables and a credit to cash a/c

Question No:-2 (No.6 per screen above):-

The estimate of the workers compensation for the year is calculated as follows:-

$84,000* 0.6% = $504

The journal entry to record the payment of insurance on workers compensation is:-

	Particulars	Amount	Amount
January 3, 20	Workers Compensation Insurance expense A/c	504
	To Cash A/c		504
	(To record the insurance payment )

Kindly request you to post the remaining question separately so that we can canswer that as well. All the best and please do let me know if you have any questions via comments.