The following are the account balances forwarded as of June 1: (1) Union Due Pay

Question

The following are the account balances forwarded as of June 1:
(1) Union Due Payable: $105
(2) Employees SIT Payable: $480.27
(3) FICA Taxes Payable - OASDI: $1,471.88
(4) FICA Taxes Payable - HI: $344.24
(5) Employees FIT Payable: $1,040.00
(6) FUTA Taxes Payable: $292.11
(7) SUTA Taxes Payable: $547.98
(8) Cash: $31,805.77
(9) Wages and Salaries: $95,185.00
(10) Payroll taxes: $9,360.29

Note: The SUTA tax rate is 2.3%.

a. Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.

b. Post the June journal entries in chronological order to the general ledger accounts in the attached spreadsheet. When finished, enter the final June 30 balance of each account below.

c. Answer the following questions:

Enter your answers to the nearest cent. If an amount is zero, enter "0".

1. The total amount of the liability for FICA taxes and federal income taxes withheld as of June 30 is:

$

2. The total amount of the liability for state income taxes withheld as of June 30 is:

$

3. The amount of FUTA taxes that must be paid to the federal government on or before August 1 (July 31 is a Sunday) is:

$

4. The amount of contributions that must be paid into the state unemployment compensation fund on or before August 1 is:

$

5. The total amount due the treasurer of the union is:

$

6. The total amount of wages and salaries expense since the beginning of the fiscal year is:

$

7. The total amount of payroll taxes expense since the beginning of the fiscal year is:

$

8. Using the partial journal below, journalize the entry to record the vacation accrual at the end of the company's fiscal year. The amount of Brookins Company's vacation accrual for the fiscal year is $15,000.

June 3. Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May. 15. Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues. 15. Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls. 30. Payroll: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues.

Explanation / Answer

DATE DESCRIPTION DEBIT CREDIT 20-- June.3 Union Dues Payable $      105.00 Cash $   105.00 Jun. 15-Payroll Wages and Salaries $   6,380.00 FICA Taxes Payable-OASDI $      791.00 FICA Taxes Payable-HI $      185.00 Employees FIT Payable $   549.00 Employees SIT Payable $   128.70 Union Dues Payable $     50.00 Cash $6,628.30 Jun. 15-Taxes Payroll Taxes $   1,286.00 FICA Taxes Payable-OASDI $   791.00 FICA Taxes Payable-HI $   185.00 FUTA Taxes Payable $   195.00 SUTA Taxes Payable $   115.00 Jun. 15-Federal Taxes FICA Taxes Payable-OASDI $   1,471.88 FICA Taxes Payable-HI $      344.24 Employees FIT Payable $   1,040.00 Cash $2,856.12 Jun. 30-Payroll Wages and Salaries       6,250.00 FICA Taxes Payable-OASDI          775.00 FICA Taxes Payable-HI          181.00 Employees FIT Payable       538.00 Employees SIT Payable       127.60 Union Dues Payable        50.00 Cash    6,490.40 Jun. 30-Taxes Payroll Taxes $   1,251.74 FICA Taxes Payable-OASDI $   775.00 FICA Taxes Payable-HI $   181.00 FUTA Taxes Payable $   186.03 SUTA Taxes Payable $   109.71

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