The following payroll liability accounts are included in the

The following payroll liability accounts are included in the ledger of Harmon Company on January 1, 2017. FICA Taxes Payable $760 Federal Income Taxes Payable 1,210 State Income Taxes Payable 105 Federal Unemployment Taxes Payable 285 State Unemployment Taxes Payable 1,930 Union Dues Payable 855 U.S. Savings Bonds Payable 360 In January, the following transactions occurred. Jan. 10 Sent check for $855 to union treasurer for union dues. 12 Remitted check for $1,970.00 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 $360. 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 $54,000, FICA taxes withheld $4,131, federal income taxes payable $2,135, state income taxes payable $490, union dues payable $405, United Fund contributions payable $1,960, and net pay $44,879. 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.

Journalize the January transactions. (Round answers to 2 decimal places, e.g. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Solution

Date Accounts Debit   Credit 10-Jan Union Dues Payable $         855 Cash $          855 12-Jan FICA Taxes payable $         760 Federal Income Taxes Payable $     1,210 Cash $      1,970 15-Jan US Saving Bonds Payable $         360 Cash $          360 17-Jan State Income taxes payable $         105 Cash $          105 20-Jan Federal Unemployment Taxes payable $         285 State Unemployment Taxes payable $     1,930 Cash $      2,215 31-Jan Salaries & Wages expenses $   54,000 FICA Taxes payable $      4,131 Federal Income Taxes Payable $      2,135 State Income taxes Payable $          490 Union Dues payable $          405 United Fund Contribution payable $      1,960 Salaries & Wages payable $    44,879 31-Jan Salaries & Wages payable $   44,879 Cash $    44,879 31-Jan Payroll Tax expenses $     7,479 FICA Taxes payable $      4,131 Federal Unemployment Taxes payable (54000*.8%) $          432 State Unemployment Taxes payable (54000*5.4%) $      2,916 31-Jan Vacation and Holiday Expense      $     3,240 Vacation and Holiday payable       $      3,240