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 $71,200 211 Employee Federal Income Tax Payable 3,555 212 Social Security Tax Payable 5,135 213 Medicare Tax Payable 1,181 218 Savings Bond Deductions Payable 1,225 221 FUTA Tax Payable 592 222 SUTA Tax Payable 3,996 511 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 $9,871 covering the following May taxes: Social Security tax $5,135 Medicare tax 1,181 Employee federal income tax withheld 3,555 Total $9,871 30 June payroll: Total wages and salaries expense $46,000 Less amounts withheld: Social Security tax $2,852 Medicare tax 667 Employee federal income tax 3,910 Savings bond deductions 1,225 8,654 Net amount paid $37,346 30 Purchased savings bonds for employees, $2,450 30 Employer payroll taxes expenses for June were: Social Security $2,852 Medicare 667 FUTA 92 SUTA 621 Total $4,232 July 15 Paid $10,948 covering the following June taxes: Social Security tax $5,704 Medicare tax 1,334 Employee federal income tax withheld 3,910 Total $10,948 31 Paid SUTA tax for the quarter, $4,617 31 Paid FUTA tax, $684 Required: 1. Journalize the preceding transactions using a general journal. Enter the posting reference when you post to T accounts in part 2. Page: DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20--June 15 1 2 2 3 3 4 4 5 Deposit of employee federal income tax andSocial Security and Medicare taxes 5 6 6 7 30 7 8 8 9 9 10 10 11 11 12 12 13 To record June payroll 13 14 14 15 30 15 16 16 17 Purchased U.S. savings bonds for employees 17 18 18 19 30 19 20 20 21 21 22 22 23 23 24 To record employer payroll taxes expense 24 25 25 26 July 15 26 27 27 28 28 29 29 30 Deposit of employee federal income tax andSocial Security and Medicare taxes 30 31 31 32 31 32 33 33 34 Paid SUTA tax 34 35 35 36 31 36 37 37 38 Paid FUTA tax 38 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. Cash 101 Employee Federal Income Tax Payable 211 Social Security Tax Payable 212 Medicare Tax Payable 213 Savings Bond Deductions Payable 218 FUTA Tax Payable 221 SUTA Tax Payable 222 Wages and Salaries Expense 511 Payroll Taxes Expense 530

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 $71,200 211 Employee Federal Income Tax Payable 3,555 212 Social Security Tax Payable 5,135 213 Medicare Tax Payable 1,181 218 Savings Bond Deductions Payable 1,225 221 FUTA Tax Payable 592 222 SUTA Tax Payable 3,996 511 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 $9,871 covering the following May taxes: Social Security tax $5,135 Medicare tax 1,181 Employee federal income tax withheld 3,555 Total $9,871 30 June payroll: Total wages and salaries expense $46,000 Less amounts withheld: Social Security tax $2,852 Medicare tax 667 Employee federal income tax 3,910 Savings bond deductions 1,225 8,654 Net amount paid $37,346 30 Purchased savings bonds for employees, $2,450 30 Employer payroll taxes expenses for June were: Social Security $2,852 Medicare 667 FUTA 92 SUTA 621 Total $4,232 July 15 Paid $10,948 covering the following June taxes: Social Security tax $5,704 Medicare tax 1,334 Employee federal income tax withheld 3,910 Total $10,948 31 Paid SUTA tax for the quarter, $4,617 31 Paid FUTA tax, $684 Required: 1. Journalize the preceding transactions using a general journal. Enter the posting reference when you post to T accounts in part 2. Page: DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20--June 15 1 2 2 3 3 4 4 5 Deposit of employee federal income tax andSocial Security and Medicare taxes 5 6 6 7 30 7 8 8 9 9 10 10 11 11 12 12 13 To record June payroll 13 14 14 15 30 15 16 16 17 Purchased U.S. savings bonds for employees 17 18 18 19 30 19 20 20 21 21 22 22 23 23 24 To record employer payroll taxes expense 24 25 25 26 July 15 26 27 27 28 28 29 29 30 Deposit of employee federal income tax andSocial Security and Medicare taxes 30 31 31 32 31 32 33 33 34 Paid SUTA tax 34 35 35 36 31 36 37 37 38 Paid FUTA tax 38 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. Cash 101 Employee Federal Income Tax Payable 211 Social Security Tax Payable 212 Medicare Tax Payable 213 Savings Bond Deductions Payable 218 FUTA Tax Payable 221 SUTA Tax Payable 222 Wages and Salaries Expense 511 Payroll Taxes Expense 530

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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	$71,200
211	Employee Federal Income Tax Payable	3,555
212	Social Security Tax Payable	5,135
213	Medicare Tax Payable	1,181
218	Savings Bond Deductions Payable	1,225
221	FUTA Tax Payable	592
222	SUTA Tax Payable	3,996
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 $9,871 covering the following May taxes:
	Social Security tax		$5,135
	Medicare tax		1,181
	Employee federal income tax withheld		3,555
	Total		$9,871
30	June payroll:
	Total wages and salaries expense		$46,000
	Less amounts withheld:
	Social Security tax	$2,852
	Medicare tax	667
	Employee federal income tax	3,910
	Savings bond deductions	1,225	8,654
	Net amount paid		$37,346
30	Purchased savings bonds for employees, $2,450
30	Employer payroll taxes expenses for June were:
	Social Security		$2,852
	Medicare		667
	FUTA		92
	SUTA		621
	Total		$4,232
July 15	Paid $10,948 covering the following June taxes:
	Social Security tax		$5,704
	Medicare tax		1,334
	Employee federal income tax withheld		3,910
	Total		$10,948
31	Paid SUTA tax for the quarter, $4,617
31	Paid FUTA tax, $684

Required:

1. Journalize the preceding transactions using a general journal. Enter the posting reference when you post to T accounts in part 2.

Page:

	DATE	ACCOUNT TITLE
1	20-- June 15		1
2			2
3			3
4			4
5		Deposit of employee federal income tax and Social Security and Medicare taxes	5
6			6
7	30		7
8			8
9			9
10			10
11			11
12			12
13		To record June payroll	13
14			14
15	30		15
16			16
17		Purchased U.S. savings bonds for employees	17
18			18
19	30		19
20			20
21			21
22			22
23			23
24		To record employer payroll taxes expense	24
25			25
26	July 15		26
27			27
28			28
29			29
30		Deposit of employee federal income tax and Social Security and Medicare taxes	30
31			31
32	31		32
33			33
34		Paid SUTA tax	34
35			35
36	31		36
37			37
38		Paid FUTA tax	38

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.

Cash	101

Employee Federal Income Tax Payable	211

Social Security Tax Payable	212

Medicare Tax Payable	213

Savings Bond Deductions Payable	218

FUTA Tax Payable	221

SUTA Tax Payable	222

Wages and Salaries Expense	511

Payroll Taxes Expense	530

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