Week 1 Accounting

1

Date Account Titles and Explanation

. R . Debit Credit Office Salaries Expense 52 1533 .83

FICA Taxes Payable - OASDI 20 .1 1243 .10

FICA Taxes Payable - HI 20 .2 290 .73 Payroll Taxes Expense 56 1533 .83

FICA Taxes Payable - OASDI 20 .1 1243 .10

FICA Taxes Payable - HI 20 .2 290 .73

FUTA Tax Payable 24 148 .00

SUTA Tax Payable 12 1147 .00 2 ) Since the merit rating is decreased to 4 .9 the payroll tax expense will change by 129 .50 (This is because the net

FUTA tax rate earlier was 0 .8 which will now increase to 1 .5 . This will affect the payable FUTA tax only

3 ) If D .Ring earned 2 ,000 for the week , then the change in the payroll tax expense would be 130 .05 . The change would affect the FICA - OASDI and the FICA - HI taxes only

4 ) This payroll tax is due on February 1 , 200x and can be paid upto February 15 , 200x without any fines or late charges GENERAL JOURNAL Date Account Titles and Explanation

. R . Debit Credit Feb 15 Office Salaries Expense 52 3810 .00

FICA Taxes Payable - OASDI 20 .1 610 .00

FICA Taxes Payable - HI 20 .2 200 .00

Employees FIT Payable 24 3000 .00 Payroll Taxes Expense 56 810 .00

FICA Taxes Payable - OASDI 20 .1 610 .00

FICA Taxes Payable - HI 20 .2 200 .00 5

GENERAL JOURNAL Date Account Titles and Explanation

. R . Debit Credit Office Salaries Expense 52 10380 .00

FICA Taxes Payable - OASDI 20 .1 8060 .00

FICA Taxes Payable - HI 20 .2 2320 .00 Payroll Taxes Expense 56 17080 .00

FICA Taxes Payable - OASDI 20 .1 8060 .00

FICA Taxes Payable - HI 20 .2 2320 .00

FUTA Tax Payable 24 800

SUTA Tax Payable 12 5900 The 6 ) Carol 's grocery store should make semi-weekly deposits for Form 941 in 200C . This is because the tax liability in the look-back period exceeds 50 ,000 . Thus , the store should semi-weekly returns instead of monthly returns for Form 941

REFERENCES

Bragg , Steven M . Accounting for Payroll . Second . Colorado : John Wiley and Sons , 2004...