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 $74,200 211 Employee Federal Income Tax Payable 3,562 212 Social Security Tax Payable 5,055 213 Medicare Tax Payable 1,228 218 Savings Bond Deductions Payable 1,300 221 FUTA Tax Payable 556 222 SUTA Tax Payable 3,753 511 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 $9,845 covering the following May taxes: Social Security tax $5,055 Medicare tax 1,228 Employee federal income tax withheld 3,562 Total $9,845 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 1,300 8,729 Net amount paid $37,271 30 Purchased savings bonds for employees, $2,600 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, $4,374 31 Paid FUTA tax, $648 Required: 1. Journalize the preceding transactions using a general journal. Enter the posting reference when you post to T accounts in part 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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	$74,200
211	Employee Federal Income Tax Payable	3,562
212	Social Security Tax Payable	5,055
213	Medicare Tax Payable	1,228
218	Savings Bond Deductions Payable	1,300
221	FUTA Tax Payable	556
222	SUTA Tax Payable	3,753
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 $9,845 covering the following May taxes:
	Social Security tax		$5,055
	Medicare tax		1,228
	Employee federal income tax withheld		3,562
	Total		$9,845
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	1,300	8,729
	Net amount paid		$37,271
30	Purchased savings bonds for employees, $2,600
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, $4,374
31	Paid FUTA tax, $648

Required:

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

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