In the Illustrative Case in this chapter, payroll transactions for Brookins Company were analyzed, journalized, and posted for the third quarter of the fiscal year. In this problem, you are to record the payroll transactions for the last quarter of the firm's fiscal year. The last quarter begins on April 1, 20.
Refer to the Illustrative Case on pages 6-23 to 6-29 and proceed as follows:
a. Analyze and journalize the transactions described in the following narrative. Use the two-column journal paper provided on pages 6-70 to 6-73. Omit the writing of explanations in the journal entries.
b. Post the journal entries to the general ledger accounts on pages 6-74 to 6-79.
Narrative of Transactions:
Apr. 1. Paid the treasurer of the union the amount of union dues withheld from workers earnings during March.
15. Payroll: $8,310.All wages and salaries taxable. Withheld $890 for federal income taxes, $166.20 for state income taxes, and $140 for union dues.
15. Paid the treasurer of the state the amount of state income taxes withheld from workers' earnings during the first quarter.
15. Electronically transferred funds to remove the liability for FICA taxes and employees' federal income taxes withheld on the March payrolls.
29. Payroll: $7,975. All wages and salaries taxable. Withheld $815 for federal income taxes, $151.50 for state income taxes, and $135 for union dues.
29. Filed the Employer's Quarterly Federal Tax Return (Form 941) for the period ended March 31. No journal entry is required, since the FICA taxes and federal income taxes withheld have been timely paid.
29. Filed the state contribution return for the quarter ended March 31 and paid the amount to the state unemployment compensation fund.
May 2. Paid the treasurer of the union the amount of union dues withheld from workers' earnings during April.
13. Payroll: $8,190. All wages and salaries taxable. Withheld $875 for federal income taxes, $160.05 for state income taxes, and $135 for union dues.
16. Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the April payrolls.
31. Payroll: $8,755. All wages and salaries taxable. Withheld $971 for federal income taxes, $174.05 for state income taxes, and $140 for union dues.
June 3. Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May.
15. Payroll: $9,110. All wages and salaries taxable, except only $4,210 is taxable under FUTA and SUTA.
Withheld $1,029 for federal income taxes, $187.15 for state income taxes, and $145 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: $8,960. All wages and salaries taxable, except only $2,280 is taxable under FUTA and SUTA. Withheld $988 for federal income taxes, $183.95 for state income taxes, and $145 for union dues.
c. Answer the following questions:
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 (assume 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.