ording Payroll and Payroll Taxes Beamon Corporation had the following payroll fo

Question

ording Payroll and Payroll Taxes Beamon Corporation had the following payroll for April: L1 PIO-JA. Officers' salaries.. Sales salaries. Federal income taxes withheld. $34,000 . . . .7,500 Health insurance premiums Salaries (included above) subject to federal unemployment taxes . . .. Salaries (included above) subject to state unemployment taxes........._. .. 58,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal unemployment tax is 0.6 percent, and the state unemployment tax is 5.4 percent.) Payment of all liabilities related to this payroll. (Assume that all are settled at the same time.) d akan from Fremont Wholesale

Explanation / Answer

SOLUTION:

Date Particulars Debit Credit PART-A Apr-30 Office salaries expense 32,000 Sales salaries expense 67,000 Federal income tax withholding payable 19,000 FICA tax payable 7,500 Union dues payable 1,200 Health insurance premiums payable 1,600 Payroll payable 69,700 PART-B Apr-30 Payroll payable 69,700 Cash 69,700 To pay April payroll PART-C Apr-30 Payroll tax expense 11,070 Federal unemployment tax payable 330 FICA tax apyable 7,500 State unemployment tax payable 3,240 PART-D Apr-30 Federal income tac withholding payable 19,000 FICA tax payable 15,000 Federal unemployment tax payable 330 Health insurance premums payable 1,600 Union dues payable 1,200 State unemployment tax payable 3,240 Cash 40,370 To record the payment of payroll-related liabilities

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