In the Illustrative Case in this chapter, payroll transactions for Brookins Comp
ID: 2573893 • Letter: I
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--.
The following are the account balances forwarded as of May 1:
(1) Union Due Payable: $275.00
(2) Employees SIT Payable: $317.70
(3) FICA Taxes Payable - OASDI: $2,019.34
(4) FICA Taxes Payable - HI: $472.28
(5) Employees FIT Payable: $1,705.00
(6) FUTA Taxes Payable: $246.87
(7) SUTA Taxes Payable: $374.56
(8) Cash: $41,270.51
(9) Wages and Salaries: $87,645.00
(10) Payroll Taxes: $8,564.82
Note: The SUTA tax rate is 2.3%.
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.
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. GENERAL JOURNAL PAGE 20 DATE DESCRIPTION DEBIT CREDIT 20-- May 2 Union Union Dues Payable Dues 105.00X Cash 105.00X May 13 Payroll Wages and Salaries 5,810.00 X FICA Taxes Payable-OASDI FICA Taxes Payable-HI Employees FIT Payable Employees SIT Payablev Union Dues Payable Cash 360.22 X 84.25 X 507.00X 125.05X 55.00 X 4,678.48 XExplanation / Answer
Please note: The FUTA tax rate is not provided and hence has been calculated basis April numbers as ($246.87 / ($8310 + $7975) = 1.51%. Please check on the same.
GENERAL JOURNAL DATE DESCRIPTION DEBIT CREDIT 20-- Union Dues Payable 275.00 May 2- Cash 275.00 Union Dues May 13- Wages and Salaries 8190.00 Payroll FICA Taxes Payable-OASDI ($8190 x 6.2%) 507.78 FICA Taxes Payable-HI ($8190 x 1.45%) 118.76 Employees FIT Payable 875.00 Employees SIT Payable 160.05 Union Dues Payable 135.00 Cash 6393.42 May 13- Payroll Taxes 938.579 Payroll FICA Taxes Payable-OASDI ($8190 x 6.2%) 507.78 Taxes FICA Taxes Payable-HI ($8190 x 1.45%) 118.76 FUTA Taxes Payable ($8190 X 1.51%) 123.67 SUTA Taxes Payable ($8190 x 2.3%) 188.37 May 16- FICA Taxes Payable-OASDI 2019.34 Federal FICA Taxes Payable-HI 472.28 Taxes Employees FIT Payable 1705.00 Cash 4196.62 May 31- Wages and Salaries 8755.00 Payroll FICA Taxes Payable-OASDI ($8755 x 6.2%) 542.81 FICA Taxes Payable-HI ($8755 x 1.45%) 126.95 Employees FIT Payable 971.00 Employees SIT Payable 174.05 Union Dues Payable 140.00 Cash 6800.19 May 31- Payroll Taxes 1003.33 Payroll FICA Taxes Payable-OASDI ($8755 x 6.2%) 542.81 Taxes FICA Taxes Payable-HI ($8755 x 1.45%) 126.95 FUTA Taxes Payable ($8755 x 1.51) 132.20 SUTA Taxes Payable ($8755 x 2.3%) 201.37