enu Recording Payroll and Payroll Taxes Beamon Corporation had the following pay

Question

enu Recording Payroll and Payroll Taxes Beamon Corporation had the following payroll for April: Officers' salaries Sales salaries Federal income taxes withheld FICA taxes withheld Health insurance premiums withheld Union dues withheld Salaries (included above) subject to federal unemployment taxes Salaries (included above) subject to state unemployment taxes $34,000 67,000 19,000 7,500 1,800 1,200 55,000 58,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll c. Accrual of employer's payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal unemployment tax is 0.6 percent, and the state unemployment tax is 5.4 percent.) d. Payment of all liabilities related to this payroll. (Assume that all are settled at the same time.) General Journal

Explanation / Answer

Date Account Titles and Explaination Debit Credit a April 30 Officers salaries $34,000 Sales salaries $67,000 Federal Income tax withholding payable a/c $19,000 FICA tax payable a/c $7,500 Health Insurance premium payable a/c $1,800 Union Dues payable a/c $1,200 Payroll payable a/c $71,500 [Being April month Payroll accrued] b April 30 Payroll payable a/c $71,500 cash a/c $71,500 [Net payroll paid for april] c April 30 Payroll taxes a/c $10,962 FICA tax payable a/c $7,500 Federal Unemployment tax Payable a/c [$55,000 x 0.6%] $330 State Unemployment tax payable [$58,000 x 5.4%] $3,132 [Payroll taxes payable by the employer recorded] d April 30 Federal Income tax withholding payable a/c $19,000 FICA tax payable a/c $15,000 Health Insurance premium payable a/c $1,800 Union Dues payable a/c $1,200 Federal Unemployment tax Payable a/c $330 State Unemployment tax payable $3,132 Cash a/c $40,462 [Being all liabilities payable related to april payroll settled]

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