Journalizing And Posting Payroll EntriesCascade 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 NumberTitleBalance on June 1101Cash$67,600211Employee Federal Income Tax Payable3,560212Social Security Tax Payable5,119213Medicare Tax Payable1,195218Savings Bond Deductions Payable1,275221FUTA Tax Payable568222SUTA Tax Payable3,834511Wages and Salaries Expense0530Payroll Taxes Expense0The following transactions relating to payrolls and payroll taxes occurred during June and July:June 15Paid $9,874 covering the following May taxes: Social Security tax $5,119 Medicare tax 1,195 Employee federal income tax withheld 3,560 Total $9,87430June payroll: Total wages and salaries expense $46,000 Less amounts withheld: Social Security tax$2,852 Medicare tax667 Employee federal income tax3,910 Savings bond deductions1,2758,704 Net amount paid $37,29630Purchased savings bonds for employees, $2,550 30Employer payroll taxes expenses for June were: Social Security $2,852 Medicare 667 FUTA 92 SUTA 621 Total $4,232July 15Paid $10,948 covering the following June taxes: Social Security tax $5,704 Medicare tax 1,334 Employee federal income tax withheld 3,910 Total $10,94831Paid SUTA tax for the quarter, $4,455 31Paid FUTA tax, $660 Journalize the preceding transactions using a general journal. DOC.POST.DATEACCOUNT TITLEDEBITCREDITNO.REF.20--1June 151223344Deposit of employee federal income tax andSocial Security and Medicare taxes566.730788910101111121213To record June payroll13141415 3015161617Purchased U.S. savings bonds for employees171818 19 3019202021212222232324To record employer payroll taxes expense24252526 July 1526272728282929Deposit of employee federal income tax and3030Social Security and Medicare taxes3131388BE32 3132333334Paid SUTA tax34353536 3136373738Paid FUTA tax38

DATE PARTICULARS DOC.NO POST. REF. DEBIT CREDIT 1 15 JUNE Social security tax payable 212…

Answered: Journalizing And Posting Payroll…

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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Journalizing And Posting Payroll Entries

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	$67,600
211	Employee Federal Income Tax Payable	3,560
212	Social Security Tax Payable	5,119
213	Medicare Tax Payable	1,195
218	Savings Bond Deductions Payable	1,275
221	FUTA Tax Payable	568
222	SUTA Tax Payable	3,834
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 $9,874 covering the following May taxes:
	Social Security tax		$5,119
	Medicare tax		1,195
	Employee federal income tax withheld		3,560
	Total		$9,874
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	1,275	8,704
	Net amount paid		$37,296
30	Purchased savings bonds for employees, $2,550
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, $4,455
31	Paid FUTA tax, $660

Journalize the preceding transactions using a general journal.

DOC.
POST.
DATE
ACCOUNT TITLE
DEBIT
CREDIT
NO.
REF.
20--
1
June 15
1
2
2
3
3
4
4
Deposit of employee federal income tax and
Social Security and Medicare taxes
5
6
6.
7
30
7
8
8
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
Deposit of employee federal income tax and
30
30
Social Security and Medicare taxes
31
31
388
BE
32 31
32
33
33
34
Paid SUTA tax
34
35
35
36 31
36
37
37
38
Paid FUTA tax
38

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