Question
The following payroll liability accounts are included in the ledger of Lily Company on January 1, 2020. FICA Taxes Payable $700 Federal Income Taxes Payable
The following payroll liability accounts are included in the ledger of Lily Company on January 1, 2020.
FICA Taxes Payable | $700 | |
Federal Income Taxes Payable | 1,210.00 | |
State Income Taxes Payable | 105.00 | |
Federal Unemployment Taxes Payable | 275.00 | |
State Unemployment Taxes Payable | 1,965.00 | |
Union Dues Payable | 850 | |
U.S. Savings Bonds Payable | 345 |
In January, the following transactions occurred.
Jan. | 10 | Sent check for $850 to union treasurer for union dues. | |
12 | Remitted check for $1,910.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. | ||
15 | Purchased U.S. Savings Bonds for employees by writing check for $345. | ||
17 | Paid state income taxes withheld from employees. | ||
20 | Paid federal and state unemployment taxes. | ||
31 | Completed monthly payroll register, which shows salaries and wages $56,000, FICA taxes withheld $4,284, federal income taxes payable $2,050, state income taxes payable $440, union dues payable $360, United Fund contributions payable $1,980, and net pay $46,886. | ||
31 | Prepared payroll checks for the net pay and distributed checks to employees. |
At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.
1. | Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%. | |
2. | Vacation pay: 6% of gross earnings. |
The following payroll liability accounts are included in the ledger of Lily Company on January 1, 2020.
FICA Taxes Payable | $700 | |
Federal Income Taxes Payable | 1,210.00 | |
State Income Taxes Payable | 105.00 | |
Federal Unemployment Taxes Payable | 275.00 | |
State Unemployment Taxes Payable | 1,965.00 | |
Union Dues Payable | 850 | |
U.S. Savings Bonds Payable | 345 |
In January, the following transactions occurred.
Jan. | 10 | Sent check for $850 to union treasurer for union dues. | |
12 | Remitted check for $1,910.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. | ||
15 | Purchased U.S. Savings Bonds for employees by writing check for $345. | ||
17 | Paid state income taxes withheld from employees. | ||
20 | Paid federal and state unemployment taxes. | ||
31 | Completed monthly payroll register, which shows salaries and wages $56,000, FICA taxes withheld $4,284, federal income taxes payable $2,050, state income taxes payable $440, union dues payable $360, United Fund contributions payable $1,980, and net pay $46,886. | ||
31 | Prepared payroll checks for the net pay and distributed checks to employees. |
At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.
1. | Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%. | |
2. | Vacation pay: 6% of gross earnings. |
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