Francisco Company has 1 0 employees, each of whom earns $ 2 , 8 0 0 per
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Question:
Francisco Company has employees, each of whom earns $ per month and is paid on the last day of each month. All have been employed continuously at this amount since January On March the following accounts and balances exist in its general ledger.
FICASocial Security Taxes Payable, $; FICAMedicare Taxes Payable, $The balances of these accounts represent total liabilities for both the employers and employees FICA taxes for the February payroll only.
Employees Federal Income Taxes Payable, $liability for February only
Federal Unemployment Taxes Payable, $liability for January and February together
State Unemployment Taxes Payable, $liability for January and February together
The company had the following payroll transactions.
March Issued check payable to Swift Bank, a federal depository bank authorized to accept employers payments of FICA taxes and employee income tax withholdings. The $ check is in payment of the February FICA and employee income taxes.
March Recorded the journal entry for the March salaries payable. Then recorded the cash payment of the March payroll the company issued checks payable to each employee in payment of the March payroll The payroll register shows the following summary totals for the March pay period.
Salaries
Office Salaries Shop Salaries Gross Pay FICA Taxes Federal Income Taxes Net Pay
$ $ $ $ $ $
$
Federal Insurance Contributions Act FICA taxes are Social Security and Medicare, respectively.
March Recorded the employers payroll taxes resulting from the March payroll. The company has a state unemployment tax rate of on the first $ paid to each employee. The federal rate is
April Issued check to Swift Bank in payment of the March FICA and employee income taxes.
April Issued check to the State Tax Commission for the January, February, and March state unemployment taxes. Filed the check and the firstquarter tax return with the Commission.
April Issued check payable to Swift Bank in payment of the employers FUTA taxes for the first quarter of the year.
April Filed Form with the IRS, reporting the FICA taxes and the employees federal income tax withholdings for the first quarter.
Required:
Prepare journal entries to record these transactions and events.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account fi
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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