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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
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 |
2. Below are the T accounts for the payroll expenses and liabilities. Enter the beginning balances and post the transactions recorded in the journal. After you post to the T-accounts, go back and complete the posting in part 1.
Cash | 101 | ||
---|---|---|---|
Employee Federal Income Tax Payable | 211 | ||
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Social Security Tax Payable | 212 | ||
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Medicare Tax Payable | 213 | ||
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Savings Bond Deductions Payable | 218 | ||
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FUTA Tax Payable | 221 | ||
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SUTA Tax Payable | 222 | ||
---|---|---|---|
Wages and Salaries Expense | 511 | ||
---|---|---|---|
Payroll Taxes Expense | 530 | ||
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