9 Francisco Company has 10 employees, each of whom eams $2,800 per month and is

Question

9 Francisco Company has 10 employees, each of whom eams $2,800 per month and is paid on the last day of each month, All 10o ben employed continuously at this amount since January 1. On March 1,the following accounts and balances exist in itsave ledger 10 Security Taxes Payable, $3.472; FICA-Medicare Taxes Pay able, $812. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February Federal Income Taxes Payable, $7000 (liability for February only) payroll only) c. Federal Unemployment Taxes Payable. $336 (iability for January and February together) d. State Unemployment Taxes Payable, $2.240 (liability for January and February together) During March and April, the company had the following payroll transaction Mar. 15 Issued check payable to Swift Bank, a federal depos i tory bank authorized to acec employee income tax withholdings. The $11,284 check is in payment of the February FICA and employee income taxes. the journal entry for the March salaries payable. Then recorded the cash payment of the March payroll (the company checks payable to each employee in payment of the March payroll). The payroll register shows the following summary totals for the March pay period. Gross FICA Taxes $ 16,880 $28,080 1,736 7,000 $18,85 $ 486 FICA taxes are Social Security and Medicare, respectively 31 Recorded the enployer's payroll taxes resulting from the March payroll. The company has a merit rating that reduces its 15 Issued check to the State Tax Commission for the January, February, and March state unemployment taxes. Filed the check and 38 Issued check payable to Swift Bank in payment of the employer's FUTA taxes for the first quarter of the year. state unempl nt tax rate to 4.00% of the first $7,000 paid each employee. The federal rate is .60. Apr. 15 Issued check to Swift Bank in payment of the March FICA and employee income taxes the first-quarter tax return with the Coemission Filed Form 941 with the IRS, reporting the FICA taxes and the employees federal income tax withholdings for the first quarter

Explanation / Answer

Date General Journal Debit Credit Requirement 1 15-Mar FICA - Social Sec. taxes payable $3,472 FICA - Medicare taxes payable $812 Employee fed. Inc. taxes payable $7,000 Cash $11,284 Requirement 2 31-Mar Office Salaries Expense $11,200 Shop Salaries Expense $16,800 FICA - Social Sec. taxes payable $1,736 FICA - Medicare taxes payable $406 Employee fed. Inc. taxes payable $7,000 Salaries Payable $18,858 Requirement 3 31-Mar Salaries Payable $18,858 Cash $18,858 Requirement 4 31-Mar Payroll taxes expense $2,786 FICA - Social Sec. taxes payable $1,736 FICA - Medicare taxes payable $406 State unemployment taxes payable $560 Federal unemployment taxes payable $84 Requirement 5 15-Apr FICA - Social Sec. taxes payable $3,472 FICA - Medicare taxes payable $812 Employee Fed. Inc. taxes payable $7,000 Cash $11,284 Requirement 6 15-Apr State unemployment taxes payable $2,800 Cash $2,800 Requirement 7 30-Apr Federal unemployment taxes payable $420 Cash $420 Requirement 8 30-Apr No journal entry required

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