Journalizing And Posting Payroll Entries

Cascade Company has four employees. All are paid on a monthly basis. The fiscal year of the business is June 1 to May 31.

The accounts kept by Cascade include the following:

Account Number	Title	Balance on June 1
101	Cash	$70,200
211	Employee Federal Income Tax Payable	3,553
212	Social Security Tax Payable	5,103
213	Medicare Tax Payable	1,197
218	Savings Bond Deductions Payable	1,225
221	FUTA Tax Payable	574
222	SUTA Tax Payable	2,835
511	Wages and Salaries Expense	0
530	Payroll Taxes Expense	0

The following transactions relating to payrolls and payroll taxes occurred during June and July:

June 15	Paid $9,853 covering the following May taxes:
	Social Security tax		$5,103
	Medicare tax		1,197
	Employee federal income tax withheld		3,553
	Total		$9,853
30	June payroll:
	Total wages and salaries expense		$42,000
	Less amounts withheld:
	Social Security tax	$2,604
	Medicare tax	609
	Employee federal income tax	3,570
	Savings bond deductions	1,225	8,008
	Net amount paid		$33,992
30	Purchased savings bonds for employees, $2,450
30	Employer payroll taxes expenses for June were:
	Social Security		$2,604
	Medicare		609
	FUTA		84
	SUTA		567
	Total		$3,864
July 15	Paid $9,996 covering the following June taxes:
	Social Security tax		$5,208
	Medicare tax		1,218
	Employee federal income tax withheld		3,570
	Total		$9,996
31	Paid SUTA tax for the quarter, $3,402
31	Paid FUTA tax, $658

1. Journalize the preceding transactions using a general journal. If an amount box does not require an entry, leave it blank. Do not enter the posting reference until you have completed part 2.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- June 15						1
2							2
3							3
4							4
5		Deposit of employee federal income tax and Social Security and Medicare taxes					5
6							6
7	30						7
8							8
9							9
10							10
11							11
12							12
13		To record June payroll					13
14							14
15	30						15
16							16
17		Purchased U.S. savings bonds for employees					17
18							18
19	30						19
20							20
21							21
22							22
23							23
24		To record employer payroll taxes expense					24
25							25
26	July 15						26
27							27
28							28
29							29
30		Deposit of employee federal income tax and Social Security and Medicare taxes					30
31							31
32	31						32
33							33
34		Paid SUTA tax					34
35							35
36	31						36
37							37
38		Paid FUTA tax					38