Mastery Problem: Journalizing payroll transactions 1o2, 3,5 Keller Systems, Inc, completed payroll transactions during the period January 1 to February 15 of the current year Payroll tax rates are as follows: social security, 6,2%c Medicare, 1.45 % ; FUTA 0.8% SUTA, 5.4% No tal earnings have exceeded the tax base for calculating unemployment taxes. Keller Systems is a monthly schedule depositor for payroll taxes.
Instructions:
Journalize the following transactions on page 14 of the cash payments joumal and page 13 of the general journal given in the Working Papers. Source documents are abbreviated as follows: check, C and memorandum, M.
Transactions:
Jan-15, Paid cash for December's payroll tax liability. Withheld taxes from December
payrolls: employee income tax, $790.00; social security tax, $778.72:
and Medicare tax, $182.12. C621.
45 Paid cash for semimonthly payroll Total eamings $6.42000 withhold ings:
employee income tax, $410.00; health insurance premiums $360.00
(calculate the social security and Medicare deductions) C622.
15 Recorded employer payroll taxes éxpense for the January 15 payrollL M64.
15 Paid cash for employees' health insurance premiums, $720.00. C623 Madico.
31 Paid cash for semimonthly payrol. Gross wages, $6,810.00; withholdings
employee income tax, $445.00; health insurance premiums, $360.00.
C661 31. Recorded empioyer payroll taxes expense for the January 31
payroll. M65
31 Paid cash for FUTA tak liability for quarter ended December 31,
$43.20. C662.
31 Paid cash for SUTA tax liability for quarter ended December 31, 5291.
60 C663.
Feb 15 Paid cash for the January liability for emplovee income tax, social Security
tax, and Medicare tax, C687.
15 Paid cash for semimonthly payroll. Gross wages, $6,280.00; withholdings:
employee income tax, $398.00; health insurance premiums, $360.00.
C688
15 Recorded employer payroll taxes expense.
M66.-Gne rove and rule the cash payments journal.
1. Journalize and post payroll 1. Enter Excel formulas to
transactions in the Write Checks complete the pa register.
2. Journalize and post payroll 2. Print the worksheet.
transactions to the journal.
3. Print the check detail, journal,
and the trial balance.