The following payroll liability accounts are included in the ledger of Pettibone Company on January 1, 2010.

FICA Taxes Payable ....... $ 540

Federal Income Taxes Payable .... 1,100

State Income Taxes Payable ..... 210

Federal Unemployment Taxes Payable . 54

State Unemployment Taxes Payable .... 365

Union Dues Payable ........ 200

U.S. Savings Bonds Payable ...... 300

In January, the following transactions occurred.

Jan. 10 Sent check for $200 to union treasurer for union dues.

12 Deposited check for $1,640 in Federal Reserve bank for FICA taxes and federal income taxes withheld.

15 Purchased U.S. Savings Bonds for employees by writing check for $300.

17 Paid state income taxes withheld from employees.

20 Paid federal and state unemployment taxes.

31 Completed monthly payroll register, which shows office salaries $17,400, store wages

$22,500, FICA taxes withheld $3,192, federal income taxes payable $2,540, state income taxes payable $500, union dues payable $300, United Way contributions payable $1,300, and net pay $32,068.

31 Prepared payroll checks for the net pay and distributed checks to employees.

At January 31, the company also makes the following accruals pertaining to employee compensation.

1. Employer payroll taxes: FICA taxes 8%, state unemployment taxes 5.4%, and federal unemployment taxes 0.8%.

*2. Vacation pay: 5% of gross earnings.

Instructions

(a) Journalize the January transactions.

(b) Journalize the adjustments pertaining to employee compensation at January 31.