Answered: Journalize the transactions shown

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 1MP: The totals line from Nix Companys payroll register for the week ended March 31, 20--, is as follows:...

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Keller Systems, Inc., completed payroll transactions during the period January 1 to February 15 of the current year. Payroll tax rates are as follows: social security, 6.2%; Medicare, 1.45%; FUTA, 0.8%; SUTA, 5.4%. No total earnings have exceeded the tax base for calculating unemployment taxes. Keller Systems is a monthly schedule depositor for payroll taxes. Journalize the transactions shown in Question Assets on page 14 of the cash payments journal and page 13 of the general journal given in the Working Papers. Source documents are abbreviated as follows: memorandum, M.

Paid cash for December’s payroll tax liability. Withheld taxes from December payrolls: employee income tax, $790.00; social security tax, $1,557.44; and Medicare tax, $364.24. C621.

Paid cash for semimonthly payroll. Total earnings, $6,420.00; withholdings: employee income tax, $410.00; health insurance premiums, $360.00 (calculate the social security and Medicare deductions). C622.

Recorded employer payroll taxes expense for the January 15 payroll. M64.

Paid cash for employees’ health insurance premiums, $720.00. C623.

Paid cash for semimonthly payroll. Gross wages, $6,810.00; withholdings: employee income tax, $445.00; health insurance premiums, $360.00 (calculate the social security and Medicare deductions). C661.

Recorded employer payroll taxes expense for the January 31 payroll. M65.

Paid cash for FUTA tax liability for quarter ended December 31, $43.20. C662.

Paid cash for SUTA tax liability for quarter ended December 31, $291.60. C663.

Paid cash for the January liability for employee income tax, social security tax, and Medicare tax, C687.

Paid cash for semimonthly payroll. Gross wages, $6,280.00; withholdings: employee income tax, $398.00; health insurance premiums, $360.00 (calculate the social security and Medicare deductions). C688.

Recorded employer payroll taxes expense. M66.

Keller Systems, Inc., completed payroll transactions during the period January 1 to February 15 of the current year. Payroll tax rates are as follows:
social security, 6.2%; Medicare, 1.45%; FUTA, 0.8%; SUTA, 5.4%. No total earnings have exceeded the tax base for calculating unemployment taxes.
Keller Systems is a monthly schedule depositor for payroll taxes. Journalize the transactions shown in Question Assets on page 14 of the cash
payments journal and page 13 of the general journal given in the Working Papers. Source documents are abbreviated as follows: memorandum, M.
QUESTION ASSETS
Transactions
Payroll Tax Rates
COA
Transactions:
Jan.
15
Paid cash for December's payroll tax liability. Withheld taxes from December payrolls: employee income tax, $790.00; social security
tax, $1,557.44; and Medicare tax, $364.24. C621.
15
Paid cash for semimonthly payroll. Total earnings, $6,420.00; withholdings: employee income tax, $410.00; health insurance
premiums, $360.00 (calculate the social security and Medicare deductions). C622.
15
Recorded employer payroll taxes expense for the January 15 payroll. M64.
15
Paid cash for employees' health insurance premiums, $720.00. C623.
31
Paid cash for semimonthly payroll. Gross wages, $6,810.00; withholdings: employee income tax, $445.00; health insurance premiums,
$360.00 (calculate the social security and Medicare deductions). C661.
31
Recorded employer payroll taxes expense for the January 31 payroll. M65.
31
Paid cash for FUTA tax liability for quarter ended December 31, $43.20. C662.
31
Paid cash for SUTA tax liability for quarter ended December 31, $291.60. C663.
Feb.
15
Paid cash for the January liability for employee income tax, social security tax, and Medicare tax, C687.
15
Paid cash for semimonthly payroll. Gross wages, $6,280.00; withholdings: employee income tax, $398.00; health insurance premiums,
$360.00 (calculate the social security and Medicare deductions). C688.
15
Recorded employer payroll taxes expense. M66.

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