These payroll liability accounts are included in the ledger of Vaughn Company on January 1, 2022. FICA Taxes Payable $730.00 Federal Income Taxes Payable 1,205.00 State Income Taxes Payable 105.00 Federal Unemployment Taxes Payable 280.00 State Unemployment Taxes Payable 1,940.00 Union Dues Payable 865.00 U.S. Savings Bonds Payable 400.00 In January, the following transactions occurred. Jan. 10 Sent check for $865.00 to union treasurer for union dues. 12 Remitted check for $1,935.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. 15 Purchased U.S. Savings Bonds for employees by writing check for $400.00. 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes. 31 Completed monthly payroll register, which shows salaries and wages $66,000.00, FICA taxes withheld $5,049.00, federal income taxes payable $1,990.00, state income taxes payable $485.00, union dues payable $410.00, United Fund contributions payable $1,840.00, and net pay $56,226.00. 31 Prepared payroll checks for the net pay and distributed checks to employees. At January 31, the company also makes the following accrued adjustments pertaining to employee compensation. 1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.6%, and state unemployment taxes 5.4%. 2. Vacation pay: 6% of gross earnings. Journalize the January transactions and journalize the adjustments pertaining to employee compensation at January 31.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 6E

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These payroll liability accounts are included in the ledger of Vaughn Company on January 1, 2022.

FICA Taxes Payable		$730.00
Federal Income Taxes Payable		1,205.00
State Income Taxes Payable		105.00
Federal Unemployment Taxes Payable		280.00
State Unemployment Taxes Payable		1,940.00
Union Dues Payable		865.00
U.S. Savings Bonds Payable		400.00

In January, the following transactions occurred.

Jan.	10	Sent check for $865.00 to union treasurer for union dues.
	12	Remitted check for $1,935.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld.
	15	Purchased U.S. Savings Bonds for employees by writing check for $400.00.
	17	Paid state income taxes withheld from employees.
	20	Paid federal and state unemployment taxes.
	31	Completed monthly payroll register, which shows salaries and wages $66,000.00, FICA taxes withheld $5,049.00, federal income taxes payable $1,990.00, state income taxes payable $485.00, union dues payable $410.00, United Fund contributions payable $1,840.00, and net pay $56,226.00.
	31	Prepared payroll checks for the net pay and distributed checks to employees.

At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.

1.		Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.6%, and state unemployment taxes 5.4%.
2.		Vacation pay: 6% of gross earnings.

Journalize the January transactions and journalize the adjustments pertaining to employee compensation at January 31.

Journalize the January transactions. (Round answers to 2 decimal places, eg. 15.25. Credit account titles are automatically indented
when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
(To record completion of monthly payroll register.)
(To record preparation and distribution of payroll
checks to employees.)
>
>

Journalize the adjustments pertaining to employee compensation at January 31. (Round answers to 2 decimal places, e.g. 15.50.
Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order
presented in the problem.)
No.
Date
Account Titles and Explanation
Debit
Cred
1.
(To record employee payroll taxes.)
(To record vacation pay.)
>
2.

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