Lynden Company has the following balances in its general ledger as of June 1 of
ID: 2564081 • Letter: L
Question
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 4.2 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 $ 13,972.01 from Cash— Payroll Bank Account to pay salaries for the month.
July 14 Issued check for $ 3,937.72, 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
Record the transactions on pages 77– 78 of the general journal.
Explanation / Answer
1. Recording the FICA taxes and employees federal income taxes
2. To record employe pyroll for the month of June
3. To record employer's FICA and Unemployment expenses
Entry to record the above employer's taxes
4. To record check issued for payment of salaries
5. To record isue of check for payment of June FICA taxes and employe Federal Income taxes
6. To record check issued for payment of State Unemployment taxes payable
7.To record payment of Federal Unemployment taxes payable.
In place of Cash account we can use Bank account.
Date Acoun title Debit Credit June 30 FICA Taxes Payable 1,719.40 Employees' Federal Income Taxes Payable 995.00 Cash 2,714.40Related Questions
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