Cross Fit Corporation paid salaries and wages of $316,360 to its employees for the month of June, 2021. Of this amount, $8,360 was paid to employees who had already exceeded wages of $130,000 for the year. Also, $96,360 was paid to employees who had already been paid the SUTA maximum. FICA employee withholdings consist of a social security tax of 6.20% on the first $130,000 earned, plus a Medicare tax of 1.45% on all wages. Cross Fit pays employer taxes as follows: Its required FICA contribution, plus a FUTA tax of 6.0% on wages up to the SUTA maximum. Of this amount, 5.4% is payable to the state and 0.6% is payable to the U.S. Treasury. Employee income tax withholding was $77,000. Deductions included: union dues (in conformity with the union agreement), $6,600, and insurance premiums, $26,400. Cross Fit's employees earned a total of 200 days of compensated absences for the month. The average pay for each day was $150. During the month, 40 of the earned days were taken. Required: Show all calculations and use proper format. a) Provide formal general journal entries for each of the following as of June 30, 2021: Record liabilities for salaries and wages and related payroll deductions. Record payroll expenses and related amounts paid. Record the accrual for unpaid compensated absences for June. b) Briefly summarize how payroll and related payments and unpaid amounts are reported on the financial statements. What is reported on the income statement (revenues or expenses, what they are called), the balance sheet (assets, liabilities or equity, what they are called) and the statement of cash flows (operating, investing or financing and what they are called). Write in complete sentences in proper English. Round your answers to the nearest whole dollar. Cross Fit Corporation paid salaries and wages of $316,360 to its employees for the month of June, 2021. Of this amount, $8,360 was paid to employees who had already exceeded wages of $130,000 for the year. Also, $96,360 was paid to employees who had already been paid the SUTA maximum. FICA employee withholdings consist of a social security tax of 6.20% on the first $130,000 earned, plus a Medicare tax of 1.45% on all wages. Cross Fit pays employer taxes as follows: Its required FICA contribution, plus a FUTA tax of 6.0% on wages up to the SUTA maximum. Of this amount, 5.4% is payable to the state and 0.6% is payable to the U.S. Treasury. Employee income tax withholding was $77,000. Deductions included: union dues (in conformity with the union agreement), $6,600, and insurance premiums, $26,400. Cross Fit's employees earned a total of 200 days of compensated absences for the month. The average pay for each day was $150. During the month, 40 of the earned days were taken. Required: Show all calculations and use proper format. a) Provide formal general journal entries for each of the following as of June 30, 2021: Record liabilities for salaries and wages and related payroll deductions. Record payroll expenses and related amounts paid. Record the accrual for unpaid compensated absences for June. b) Briefly summarize how payroll and related payments and unpaid amounts are reported on the financial statements. What is reported on the income statement (revenues or expenses, what they are called), the balance sheet (assets, liabilities or equity, what they are called) and the statement of cash flows (operating, investing or financing and what they are called). Write in complete sentences in proper English. Round your answers to the nearest whole dollar
