Question

The following payroll liability accounts are included in the ledger of Crane Company on January 1, 2020.FICA Taxes Payable $700Federal Income Taxes Payable 1,180.00State Income Taxes Payable 100.00Federal Unemployment Taxes Payable 275.00State Unemployment Taxes Payable 1,930.00Union Dues Payable 800U.S. Savings Bonds Payable 300In January, the following transactions occurred.Jan.10 Sent check for $800 to union treasurer for union dues. 12 Remitted check for $1,880.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. 15 Purchase U.S. Savings Bonds for employees by writing check for $300. 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes. 31 Completed monthly payroll register, which shows salaries and wages $54,000, FICA taxes withheld $4,131, federal income taxes payable $1,800, state income taxes payable $350, union dues payable $350, United Fund contributions payable $1,750, and net pay $45,619. 31 Prepared payroll checks for the net pay and distributed checks to employees.At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.2. Vacation pay: 6% of gross earnings.1) Journalize the January transactions.Date Account Titles and Explanation Debit Credit Jan. 10 Union Dues Payable 800.00 Cash 800.00Jan. 12 FICA Taxes Payable 700.00 Federal Income Taxes Payable 1,180.00 Cash 1,880.00 Jan. 15 U.S. Savings Bonds Payable 300.00 Cash 300.00Jan. 17 State Income Taxes Payable 100.00 Cash 100.00 Jan. 20 Federal Unemployment Taxes Payable 275.00 State Unemployment Taxes Payable 1,930.00 Cash 2,205.00 Jan. 31 Salaries and Wages Expense 54,000.00 FICA Taxes Payable 14,131.00 Federal Income Taxes Payable 1,800.00 State Income Taxes Payable 350.00 11 Union Dues Payable 350.00 United Fund Contributions Payable 1,750.00 Salaries and Wages Payable 45,619.00 Jan. 31 Salaries and Wages Payable 45,619.00 Cash 45,619.00B) Journalize the adjustments pertaining to employee compensation at January 31.

Answer 1

he following payroll liability accounts are included in the ledger of Crane Company on January 1, 2020.FICA Taxes Payable $700Federal Income Taxes Payable 1,180.00State Income Taxes Payable 100.00Federal Unemployment Taxes Payable 275.00State Unemployment Taxes Payable 1,930.00Union Dues Payable 800U.S. Savings Bonds Payable 300In January, the following transactions occurred.Jan.10 Sent check for $800 to union treasurer for union dues. 12 Remitted check for $1,880.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. 15 Purchase U.S. Savings Bonds for employees by writing check for $300. 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes. 31 Completed monthly payroll register, which shows salaries and wages $54,000, FICA taxes withheld $4,131, federal income taxes payable $1,800, state income taxes payable $350, union dues payable $350, United Fund contributions payable $1,750, and net pay $45,619. 31 Prepared payroll checks for the net pay and distributed checks to employees.At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.2. Vacation pay: 6% of gross earnings.1) Journalize the January transactions.Date Account Titles and Explanation Debit Credit Jan. 10 Union Dues Payable 800.00 Cash 800.00Jan. 12 FICA Taxes Payable 700.00 Federal Income Taxes Payable 1,180.00 Cash 1,880.00 Jan. 15 U.S. Savings Bonds Payable 300.00 Cash 300.00Jan. 17 State Income Taxes Payable 100.00 Cash 100.00 Jan. 20 Federal Unemployment Taxes Payable 275.00 State Unemployment Taxes Payable 1,930.00 Cash 2,205.00 Jan. 31 Salaries and Wages Expense 54,000.00 FICA Taxes Payable 14,131.00 Federal Income Taxes Payable 1,800.00 State Income Taxes Payable 350.00 11 Union Dues Payable 350.00 United Fund Contributions Payable 1,750.00 Salaries and Wages Payable 45,619.00 Jan. 31 Salaries and Wages Payable 45,619.00 Cash 45,619.00B) Journalize the adjustments pertaining to employee compensation at January 31.

Step-by-step explanation: