Question

In the Illustrative Case in this chapter, payroll transactions for Brookins Company were analyzed, journalized, and posted for the third quarter of the fiscal year. In this problem, you are to record the payroll transactions for the last quarter of the firm's fiscal year. The last quarter begins on April 1, 20--.

Narrative of Transactions:
Apr.	1.		Paid the treasurer of the union the amount of union dues withheld from workers' earnings during March.
	15.		Payroll: $8,310. All wages and salaries taxable. Withheld $890 for federal income taxes, $166.20 for state income taxes, and $140 for union dues.
	15.		Paid the treasurer of the state the amount of state income taxes withheld from workers' earnings during the first quarter.
	15.		Electronically transferred funds to remove the liability for FICA taxes and employees' federal income taxes withheld on the March payrolls.
	29.		Payroll: $7,975. All wages and salaries taxable. Withheld $815 for federal income taxes, $151.50 for state income taxes, and $135 for union dues.
	29.		Filed the Employer's Quarterly Federal Tax Return (Form 941) for the period ended March 31. No journal entry is required, since the FICA taxes and federal income taxes withheld have been timely paid.
	29.		Filed the state contribution return for the quarter ended March 31 and paid the amount to the state unemployment compensation fund.
May	2.		Paid the treasurer of the union the amount of union dues withheld from workers' earnings during April.
	13.		Payroll: $8,190. All wages and salaries taxable. Withheld $875 for federal income taxes, $160.05 for state income taxes, and $135 for union dues.
	16.		Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the April payrolls.
	31.		Payroll: $8,755. All wages and salaries taxable. Withheld $971 for federal income taxes, $174.05 for state income taxes, and $140 for union dues.
June	3.		Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May.
	15.		Payroll: $9,110. All wages and salaries taxable, except only $4,210 is taxable under FUTA and SUTA. Withheld $1,029 for federal income taxes, $187.15 for state income taxes, and $145 for union dues.
	15.		Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls.
	30.		Payroll: $8,960. All wages and salaries taxable, except only $2,280 is taxable under FUTA and SUTA. Withheld $988 for federal income taxes, $183.95 for state income taxes, and $145 for union dues.

The following are the account balances forwarded as of April 1:
(1) Union Due Payable: $100
(2) Employees SIT Payable: $546.92
(3) FICA Taxes Payable - OASDI: $1,068.88
(4) FICA Taxes Payable - HI: $249.98
(5) Employees FIT Payable: $1,124.00
(6) FUTA Taxes Payable: $149.16
(7) SUTA Taxes Payable: $571.78
(8) Cash: $57,673.56
(9) Wages and Salaries: $71,360.00
(10) Payroll Taxes: $6,846.74

Note: The SUTA tax rate is 2.3%.

Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.

Answer 1

Apr-1 :-

Union Dues payable A/c Dr $ 100

Cash A/c Cr $ 100

(Being amount paid towards the Union Dues payable for the month of Mar)

Apr-15 :

Wages & salaries A/c Dr $ 8,310

Federal income taxes payable A/c Cr   $ 890

State Income Taxes payable A/c Cr   $ 166.2

Union Dues payable A/c Cr $ 140

Wages & salaries Payable Cr 7,113.8

(Being Salaries & wages accounted )

Apr-15 :

Employees SIT payable A/c Dr $ 546.92

Cash A/c Cr $ 546.92

(Being amount paid to Treasure of the state of the income tax held from employees during the first quarter)

Apr-15 :

FICA taxes Payable Dr $ 1,318.86

Employee FIT payable Dr $ 1,124

Cash A/c Cr $ 2,442.86

(Being amount paid to FICA taxes and Employee FIT payable held from employees during the first quarter)

Apr-29 :

Wages & salaries A/c Dr $ 7,975

Federal income taxes payable A/c Cr   $ 815

State Income Taxes payable A/c Cr   $ 151.5

Union Dues payable A/c Cr $ 135

Wages & salaries Payable Cr 6,873.85

(Being Salaries & wages accounted )

Apr-29 :

SUTA Taxes payable A/c Dr $ 571.78

Cash A/c Cr $ 571.78

(Being amount paid to SUTA taxes and filed for the return)

May-1 :-

Union Dues payable A/c Dr $ 275

Cash A/c Cr $ 275

(Being amount paid towards the Union Dues payable for the month of Apr)

May-13 :

Wages & salaries A/c Dr $ 8,190

Federal income taxes payable A/c Cr   $ 875

State Income Taxes payable A/c Cr   $ 160.05

Union Dues payable A/c Cr $ 135

Wages & Salaries payable Cr 7,019.95

(Being Salaries & wages accounted )

May-16 :

Federal Income Taxes Payable Dr 1,705

Cash Cr   1,705

(Being amount paid towards FIT payable for Apr)

May-31 :

Wages & salaries A/c Dr $ 8,755

Federal income taxes payable A/c Cr   $ 971

State Income Taxes payable A/c Cr   $ 174.05

Union Dues payable A/c Cr $ 140

Wages & Salaries payable Cr 7,469.95

(Being Salaries & wages accounted )

June-3 :-

Union Dues payable A/c Dr $ 275

Cash A/c Cr $ 275

(Being amount paid towards the Union Dues payable for the month of may)

June-15 :

Wages & salaries A/c Dr $ 9,110

Federal income taxes payable A/c Cr   $ 1029

State Income Taxes A/c payable Cr   $ 187.15

Union Dues payable A/c Cr $ 145

Wages & Salaries payable Cr 7,748.85

(Being Salaries & wages accounted )

June-15 :

Federal Income Taxes Payable Dr 1,846

Cash Cr   1,846

(Being amount paid towards FIT payable for May)

June-15 :

Wages & salaries A/c Dr $ 8,960

Federal income taxes A/c payable Cr   $ 988

State Income Taxes A/c Payable Cr   $ 183.95

Union Dues payable A/c Cr $ 145

Wages & Salaries payable Cr 7,643.05

(Being Salaries & wages accounted )