Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide journal entries for transactions 1-8 Francisco Company has 10 employees, each of whom earns $2,800 per month and is paid on the last

Please provide journal entries for transactions 1-8
image text in transcribed
image text in transcribed
image text in transcribed
Francisco Company has 10 employees, each of whom earns $2,800 per month and is paid on the last day of each month. All 10 have been employed continuously at this amount since January 1. On March 1, the following accounts and balances exist in its general ledger: a. FCA-Social Security Taxes Payable, \$3,472; FICA-Medicare Taxes Payable, \$812. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.) b. Employees' Federal Income Taxes Payable, $7,000 (liability for February only). c. Federal Unemployment Taxes Payable, $336 (liability for January and February together). d. State Unemployment Taxes Payable, $3,024 (Eability for January and February together). The compony had the following payroll transactions. March 15 Issued check payable to Swift Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and eaployee income tax withholdings. The $11,2B4 check is in payment of the February FICA and employee incoee taxes. March 31 Recorded the Journal entry for the March salaries payabte. Then recorded the cash paynent of the March payrol1 (the company issued checks payable to each employee in payment of the March payroll). The payroll register shows the following sumnary totals for the March pay period. "FICA taxes are Social Security and Medicare, respectively. March 31 Recorded the employer's payroll taxes resulting from the March payroll. The campany has a state unemployment tax rate of 5.404 on the first 57 , bee paid to each empleyee. The federal rate is e.6es. April 15 tssued check to Swift Bank, in paynent of the March FICA and employee income taxes. Aprit is issued check to the State Tax Commission for the January, February, and March state unenployment taxes. Filed April 30 the check and the first-quarter tax return with the comisission. Aprit 30 filsued Form 942, with the 1h5, reporting thaent of the employer's fuTh taxes for the tirst quarter of the year. the first quarter. Required: Prepare journal entries to record these transactions and events. Record the cash payment of FICA (employees' and employer's) and employee income taxes of the month of February. Record the (employee) payroll expenses and liabilities for the month of March. 3 Record the payment of payroll for March. 4 Record the employer's payroll expenses and liabilities for the month of March. 5 Record the cash payment of FICA (employees' and employer's) and employee income taxes of the month of March. 6 Record the cash payment of SUTA taxes for the months of January, February and March. 7 Record the cash payment of FUTA taxes for the first quarter of the year. Record the filing of Form 941 with the IRS, reporting the FICA taxes and the employees' federal income tax withholdings for the first quarter

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Certified Internal Auditor CIA Practice Of Internal Auditing Part 2- 2019

Authors: Muhammad Zain

1st Edition

1093798459, 978-1093798456

More Books

Students also viewed these Accounting questions