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Ch. 6 Prob 16A

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   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: $6,105. All wages and salaries taxable. Withheld $565 for federal income taxes, $107.32 for state income taxes, and $50 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: $5,850. All wages and salaries taxable. Withheld $509 for federal income taxes, $128.90 for state income taxes, and $55 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: $5,810. All wages and salaries taxable. Withheld $507 for federal income taxes, $125.05 for state income taxes, and $55 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: $6,060. All wages and salaries taxable. Withheld $533 for federal income taxes, $119.00 for state income taxes, and $50 for union dues.
   June	3.		Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May.
   	15.		Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 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: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 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.

   May. 13-Taxes Payroll Taxes fill in the blank 29 fill in the blank 30 FICA Taxes Payable-OASDI fill in the blank 32 fill in the blank 33 FICA Taxes Payable-HI fill in the blank 35 fill in the blank 36 FUTA Taxes Payable fill in the blank 38 fill in the blank 39 SUTA Taxes Payable fill in the blank 41 fill in the blank 42 May. 16-Federal Taxes FICA Taxes Payable-OASDI fill in the blank 44 fill in the blank 45 FICA Taxes Payable-HI fill in the blank 47 fill in the blank 48 Employees FIT Payable fill in the blank 50 fill in the blank 51 Cash fill in the blank 53 fill in the blank 54 May. 31-Payroll Wages and Salaries fill in the blank 56 fill in the blank 57 FICA Taxes Payable-OASDI fill in the blank 59 fill in the blank 60 FICA Taxes Payable-HI fill in the blank 62 fill in the blank 63 Employees FIT Payable fill in the blank 65 fill in the blank 66 Employees SIT Payable fill in the blank 68 fill in the blank 69 Union Dues Payable fill in the blank 71 fill in the blank 72 Cash fill in the blank 74 fill in the blank 75 May. 31-Payroll Taxes Payroll Taxes fill in the blank 77 fill in the blank 78 FICA Taxes Payable-OASDI fill in the blank 80 fill in the blank 81 FICA Taxes Payable-HI fill in the blank 83 fill in the blank 84 FUTA Taxes Payable fill in the blank 86 fill in the blank 87 SUTA Taxes Payable fill in the blank 89 fill in the blank 90 a. 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. GENERAL JOURNAL PAGE 21 DATE DESCRIPTION DEBIT CREDIT 20-- Jun. 3 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Jun. 15-Payroll fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27 Jun. 15-Taxes fill in the blank 29 fill in the blank 30 fill in the blank 32 fill in the blank 33 fill in the blank 35 fill in the blank 36 fill in the blank 38 fill in the blank 39 fill in the blank 41 fill in the blank 42 Jun. 15-Federal Taxes fill in the blank 44 fill in the blank 45 fill in the blank 47 fill in the blank 48 fill in the blank 50 fill in the blank 51 fill in the blank 53 fill in the blank 54 Jun. 30-Payroll fill in the blank 56 fill in the blank 57 fill in the blank 59 fill in the blank 60 fill in the blank 62 fill in the blank 63 fill in the blank 65 fill in the blank 66 fill in the blank 68 fill in the blank 69 fill in the blank 71 fill in the blank 72 fill in the blank 74 fill in the blank 75 Jun. 30-Taxes fill in the blank 77 fill in the blank 78 fill in the blank 80 fill in the blank 81 fill in the blank 83 fill in the blank 84 fill in the blank 86 fill in the blank 87 fill in the blank 89 fill in the blank 90 b. Post the June journal entries in chronological order to the general ledger accounts in the attached spreadsheet. When finished, enter the final June 30 balance of each account below. 1. Cash $fill in the blank 91 2. FICA Taxes Payable-OASDI $fill in the blank 92 3. FICA Taxes Payable-HI $fill in the blank 93 4. FUTA Taxes Payable $fill in the blank 94 5. SUTA Taxes Payable $fill in the blank 95 6. Employees FIT Payable $fill in the blank 96 7. Employees SIT Payable $fill in the blank 97 8. Union Dues Payable $fill in the blank 98 9. Wages and Salaries $fill in the blank 99 10. Payroll Taxes $fill in the blank 100 c. Answer the following questions: Enter your answers to the nearest cent. If an amount is zero, enter "0". 1. The total amount of the liability for FICA taxes and federal income taxes withheld as of June 30 is: $fill in the blank 101 2. The total amount of the liability for state income taxes withheld as of June 30 is: $fill in the blank 102 3. The amount of FUTA taxes that must be paid to the federal government on or before August 1 (July 31 is a Sunday) is: $fill in the blank 103 4. The amount of contributions that must be paid into the state unemployment compensation fund on or before August 1 is: $fill in the blank 104 5. The total amount due the treasurer of the union is: $fill in the blank 105 6. The total amount of wages and salaries expense since the beginning of the fiscal year is: $fill in the blank 106 7. The total amount of payroll taxes expense since the beginning of the fiscal year is: $fill in the blank 107 8. Using the partial journal below, journalize the entry to record the vacation accrual at the end of the company's fiscal year. The amount of Brookins Company's vacation accrual for the fiscal year is $15,000. If an amount box does not require an entry, leave it blank. Account Debit Credit fill in the blank 109 fill in the blank 110          fill in the blank 112 fill in the blank 113

Answer 1

a.

b.

c.

1

.... FICA Taxes Payable—OASDI......................................................... $1,566.12

....... FICA Taxes Payable—HI................................................................. 366.28

....... Employees FIT Payable....................................................................    1,087.00

Total liability..................................................................................   $3,019.40

2

.... $736.57

3

.... $0

4

.... $772.69

5

.... $100

6

.... $107,815.00

7

.... $10,609.82

8.   

Vacation Benefits Expense.................................. 15,000.00

Vacation Benefits Payable 15,000.00