On January 1, 2012, the ledger of Kindt Com pony contained the ability accounts.

Question

On January 1, 2012, the ledger of Kindt Com pony contained the ability accounts.During January, the company's employees earned wages of >>74,560. Withholdings related to these wages were $5,689 for Social Security (FICA). 5S.311 for federal Income tax, ard $1,593 for state income tax. The company owed no money related to these earrnngs for federal or state unemployment tax. Assume that wag; earned during January will be paid during February No entry had been recorded for wages of payroll tax expense as of January 31.

Explanation / Answer

Journal Entries Date Account Title Dr $ Cr $ Jan 1. Cash             18,000 Note Payable              18,000 Jan 5. Sales Revenue                5,400 Cash                 5,724 Sales Tax Payable                    324 Jan 12. Service Revenue              13,003 Unearned Service Revenue             13,003 Jan 14. Sales Tax Payable               6,614 Cash                6,614 Jan 20. Sales Revenue              40,800 Accounts Receivable             43,248 Sales Tax Payable                2,448 Jan 31. Wages Expense             74,360 FICA Tax Payable                5,689 Federal Income Tax Payable                5,311 State Income Tax Payable                1,593 Wages Payable              61,767 ( recording payroll and deductions) Jan 31. Federal Income Tax Payable                5,689 Payroll Tax                 5,689 (recording payroll tax for employer) Jan 31. Interest Expense                     74 Accrued Interest Payable                      74 ( Accrual of interets on Note @5% for 30 days)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.