Question

Prepare journal entries for Coronado Consulting Inc. based on the given information:

(A question about the journal entries for different payroll-related transactions)
A) Journal entries for the pay owing to employees on August 24
B) Journal entries for the employer payroll costs on August 24, assuming they will not be remitted to the government until September 15
C) Journal entries for the payment of net pay to employees on August 31
D) Journal entries for the payment to the government on September 15 of all amounts owed

Answer 1

The journal entries for Coronado Consulting Inc. include entries for pay owing to employees, employer payroll costs, payment of net pay to employees, and payment to the government.

Step-by-step explanation:

A) Journal entries for the pay owing to employees on August 24:

Debit: Salary expense account

Credit: Accounts payable - employee wages

B) Journal entries for the employer payroll costs on August 24, assuming they will not be remitted to the government until September 15:

Debit: Payroll taxes expense

Credit: Accrued payroll taxes payable

C) Journal entries for the payment of net pay to employees on August 31:

Debit: Accounts payable - employee wages

Credit: Cash

D) Journal entries for the payment to the government on September 15 of all amounts owed:

Debit: Accrued payroll taxes payable

Credit: Cash