Palouse Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries and wages earned by employees $ 217,000 Employee income taxes withheld 43,400 Employee government insurance premiums withheld 4,000 FICA payroll taxes* 15,300 *Assessed on both employer and employee (i.e., $15,300 each). Required: Prepare the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Palouse has yet to transfer any withholdings to the government. Prepare the journal entry to record the employer's payroll taxes, which have not yet been paid to the government. Provide a combined journal entry to show the payment of all amounts owed to governmental agencies.Answer the question:Journal 1. Record the payroll for March, including employee deductions.Journal 2. Record the employer's payroll taxes.Journal 3. Record the entry to show the payment of amounts owed to governmental agencies.Bank: Accounts payableCashCompensation expenseDeferred revenue FICA taxes payable - employees Fica taxes payable - employerinterest expense interest payableinterest revenue Liability for income taxes withheld - employeesLiability for insurance premiums withheld - employeesnote payable property taxes payablePurchasesRent revenueSavings accountService revenueWage payable Warranty expense warranty payable

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 1MP: The totals line from Nix Companys payroll register for the week ended March 31, 20--, is as follows:...

Salaries and wages earned by employees	$ 217,000
Employee income taxes withheld	43,400
Employee government insurance premiums withheld	4,000
FICA payroll taxes*	15,300

Prepare the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Palouse has yet to transfer any withholdings to the government.
Prepare the journal entry to record the employer's payroll taxes, which have not yet been paid to the government.
Provide a combined journal entry to show the payment of all amounts owed to governmental agencies.

Answer the question:
Journal 1. Record the payroll for March, including employee deductions.
Journal 2. Record the employer's payroll taxes.
Journal 3. Record the entry to show the payment of amounts owed to governmental agencies.

Bank:
Accounts payable
Cash
Compensation expense
Deferred revenue

FICA taxes payable - employees

Fica taxes payable - employer
interest expense
interest payable
interest revenue

Liability for income taxes withheld - employees
Liability for insurance premiums withheld - employees
note payable
property taxes payable
Purchases
Rent revenue
Savings account
Service revenue
Wage payable
Warranty expense
warranty payable