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 $$73,100$

$211$ Employee Federal Income Tax Payable $3,531$

$212$ Social Security Tax Payable $5,115$

$213$ Medicare Tax Payable $1,248$

$218$ Savings Bond Deductions Payable $1,200$

$221$ FUTA Tax Payable $536$

$222$ SUTA Tax Payable $3,618$

$511$ 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 $$9,894$ covering the following May taxes:

Social Security tax $$5,115$

Medicare tax $1,248$

Employee federal income tax withheld $3,531$

Total $$9,894$

$30$ June payroll:

Total wages and salaries expense $$40,000$

Less amounts withheld:

Social Security tax $$2,480$

Medicare tax $580$

Employee federal income tax $3,400$

Savings bond deductions $1,2007,660$

Net amount paid $$32,340$

$30$ Purchased savings bonds for employees, $$2,400$

$30$ Employer payroll taxes expenses for June were:

Social Security $$2,480$

Medicare $580$

FUTA $80$

SUTA $540$

Total $$3,680$

July $15$ Paid $$9,520$ covering the following June taxes:

Social Security tax $$4,960$

Medicare tax $1,160$

Employee federal income tax withheld $3,400$

Total $$9,520$

$31$ Paid SUTA tax for the quarter, $$4,158$

$31$ Paid FUTA tax, $$616$

Required:

$1.$ 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 $2.$

$2.$ 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 $1.$