Lynden Company has the following balances in its general ledger as of June 1 of this year: a. FICA Taxes Payable (liability for May), $1,719.40 (total for employee and employer). b. Employees’ Federal Income Tax Payable (liability for May), $995.00. c. Federal Unemployment Tax Payable (liability for April and May), $380.00. d. State Unemployment Tax Payable (liability for April and May), $1,205.75. The company completed the following transactions involving the payroll during June and July: June 13 Issued check for $2,714.40, payable to Security Bank, for the monthly deposit of May FICA taxes and employees’ federal income tax withheld. 30 Recorded the payroll entry in the general journal from the payroll register for June. The payroll register has the following column totals: 30 Recorded payroll taxes. FICA Social Security rates are 6.2 percent (employee) and 6.2 percent (employer). The employer matches the employee’s FICA Medicare rate of 1.45 percent. State unemployment tax is 5.4 percent, and federal unemployment tax is 0.6 percent. At this time, all employees’ earnings are taxable for FICA and unemployment taxes. 30 Issued check for $13,639.27 from Cash—Payroll Bank Account to pay salaries for the month. July 14 Issued check for $4,270.46, payable to Security Bank, for the monthly deposit of June FICA taxes (employee and employer) and employees’ federal income tax withheld. 31 Issued check for $2,104.15, payable to the State Tax Commission, for state unemployment tax for April, May, and June. The check was accompanied by the quarterly tax return. 31 Issued check for $479.82, payable to Security Bank, for the deposit of federal unemployment tax for April, May, and June. Required If using Working Papers, record the transactions on pages 77–78 of the general journal.

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College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter 8, Problem 4PA
Textbook Problem

Lynden Company has the following balances in its general ledger as of June 1 of this year:

  1. a. FICA Taxes Payable (liability for May), $1,719.40 (total for employee and employer).
  2. b. Employees’ Federal Income Tax Payable (liability for May), $995.00.
  3. c. Federal Unemployment Tax Payable (liability for April and May), $380.00.
  4. d. State Unemployment Tax Payable (liability for April and May), $1,205.75.

The company completed the following transactions involving the payroll during June and July:

June 13 Issued check for $2,714.40, payable to Security Bank, for the monthly deposit of May FICA taxes and employees’ federal income tax withheld.

30 Recorded the payroll entry in the general journal from the payroll register for June. The payroll register has the following column totals:

Chapter 8, Problem 4PA, Lynden Company has the following balances in its general ledger as of June 1 of this year: a. FICA

30 Recorded payroll taxes. FICA Social Security rates are 6.2 percent (employee) and 6.2 percent (employer). The employer matches the employee’s FICA Medicare rate of 1.45 percent. State unemployment tax is 5.4 percent, and federal unemployment tax is 0.6 percent. At this time, all employees’ earnings are taxable for FICA and unemployment taxes.

30 Issued check for $13,639.27 from Cash—Payroll Bank Account to pay salaries for the month.

July 14 Issued check for $4,270.46, payable to Security Bank, for the monthly deposit of June FICA taxes (employee and employer) and employees’ federal income tax withheld.

31 Issued check for $2,104.15, payable to the State Tax Commission, for state unemployment tax for April, May, and June. The check was accompanied by the quarterly tax return.

31 Issued check for $479.82, payable to Security Bank, for the deposit of federal unemployment tax for April, May, and June.

Required

If using Working Papers, record the transactions on pages 77–78 of the general journal.

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Chapter 8 Solutions

College Accounting (Book Only): A Career Approach
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