The Davis Company has the following balances in its general P.0.1,2,3 ledger as of March 1 of this year:

a. FICA Tax Payable (liability for February), $1,315.18.

b. Employees’ Federal Income Tax Payable (liability for February), $714.

c. State Unemployment Tax Payable (liability for January and February),

$928.36.

d. Federal Unemployment Tax Payable (liability for January and February),

$137.54.

e. Employees’ Medical Insurance Payable (liability for January and Eebruary),

$960.00.

The company completed the following transactions involving the payroll dur¬
ing March and April:

31 Recorded payroll taxes. Employer matches the employees’ FICA taxes. State unemployment tax is 5.4 percent. Federal unemployment tax is .8 percent. At this time, all employees’ earnings are taxable for FICA and unemployment taxes.
31 Issued check payable to the Cash-Payroll Bank Account.
31 Issued check for $6,744.41, from the Cash-Payroll Bank Account to pay the salaries for the month.
Apr. 3 Issued check for $1,440, payable to Atlas Insurance Company, for employees’ medical insurance for January, February, and March.
14 Issued check for $2,029.18, payable to Prudent Bank, for monthly deposit of March FICA taxes and employees’ federal income tax withheld.
30 Issued check, payable to Prudent Bank, for deposit of federal unem¬
ployment tax for January, February, and March, $206.31.
30 Issued check for $1,392.54, payable to State Department of Revenue, for state unemployment tax for January, February, and March. The check was accompanied by the quarterly tax return.
Instructions Record the transactions in the general journal, page 77.
Instructions for General Ledger Software 1. Record the transactions in the general journal.
2. Print the journal entries.

Transcribed Image Text:

Mar. 12 Issued check for $2,029.18 payable to Prudent Bank, for monthly deposit of February FICA taxes and employees' federal income tax withheld. 31 Recorded the payroll entry in the general journal from the payroll register for March. The payroll register had the following column totals: Sales salaries Office salaries Total earnings Employees' federal income tax deductions Employees' Social Security tax deductions Employees' Medicare tax deductions Employees' medical insurance deductions Total deductions Net pay $7,146.00 1,450.00 $8,596.00 $ 714.00 532.95 124.64 480.00 1,851.59 $6,744.41