DIRECTIONS: Journalize each of the payroll transactions listed below. Omit the writing of the description or
explanation for each journal entry, and do not skip a line between each entry. Then post all entries except the last one to
the appropriate general ledger accounts. (8 points for each correct journal entry and ½ point for each correct account
balance)
The journal page and the ledger accounts to be used in this section are supplied on the following pages. The balances
listed in the general ledger accounts for Cash, FUTA Taxes Payable, SUTA Taxes Payable, Employees SIT Payable,
Wages and Salaries, and Payroll Taxes are the results of all payroll transactions for the first quarter, not including
the last pay of the quarter. The balances in FICA Taxes Payable—OASDI, FICA Taxes Payable—HI, and
Employees FIT Payable are the amounts due from the March 15 payroll.
March 31, 20—: Paid total wages of $9,350.00. These are the wages for the last semimonthly pay of March. All of
this amount is taxable under FICA (OASDI and HI). In addition, withhold $1,175 for federal income taxes and
$102.03 for state income taxes. These are the only deductions made from the employees’ wages.
March 31, 20—: Record the employer’s payroll taxes for the last pay in March. All of the earnings are taxable
under FICA (OASDI and HI), FUTA, and SUTA (2.8% of the first $7,000 earned by each employee).
April 15, 20—: Made a deposit to remove the liability for the FICA taxes and the employees’ federal income taxes
withheld on the two March payrolls.
May 2, 20—: Made the deposit to remove the liability for FUTA taxes for the first quarter of 20—.
May 2, 20—: Filed the state unemployment contributions return for the first quarter of 20— and paid the total
amount owed for the quarter to the state unemployment compensation fund.
May 2, 20—: Filed the state income tax return for the first quarter of 20— and paid the total amount owed for the
quarter to the state income tax bureau.
December 31, 20—: In July 20—, the company changed from a semimonthly pay system to a weekly pay system.
The employees were paid every Friday through the rest of 20—. Record the adjusting entry for wages accrued at the
end of December ($770) but not paid until the first Friday in January. Do not post this entry.
December 31, 20—: The company has determined that employees have earned $19,300 in unused vacation time.
Record the adjusting entry to put this expense on the books. Do not post this entry.
JOURNAL
DATE
18
PAGE
POST
REF.
DESCRIPTION
DEBIT
CREDIT
20—
Mar.
31 Wages and Salaries
FICA Taxes Payable—OASDI
FICA Taxes Payable—HI
Employees FIT Payable
Employees SIT Payable
Cash
31 Payroll Taxes
FICA Taxes Payable—OASDI
FICA Taxes Payable—HI
FUTA Taxes Payable
SUTA Taxes Payable
Apr. 15 FICA Taxes Payable—OASDI
FICA Taxes Payable—HI
Employees FIT Payable
Cash
May
2 FUTA Taxes Payable
Cash
2 SUTA Taxes Payable
Cash
2 Employees SIT Payable
Cash
Dec. 31 Wages and Salaries
Wages and Salaries Payable
31 Vacation Benefits Expense
Vacation Benefits Payable
51
20
21
25
26
11
52
20
21
22
23
20
21
25
11
22
11
23
11
26
11
9 3 5 0 00
5
1
1 1
1
7 3
9
5
5
2
7
70
58
00
03
69
5 7 9
1 3 5
7 4
2 6 1
70
58
80
80
1 0 5 1 88
2 2 8 7 80
5 3 5 06
2 3 0 5 00
5 1 2 7 86
5 2 2 95
5 2 2 95
1 4 8 0 34
1 4 8 0 34
5 8 0 74
5 8 0 74
7 7 0 00
7 7 0 00
1 9 3 0 0 00
1 9 3 0 0 00
GENERAL LEDGER
CASH
ACCOUNT
DATE
ITEM
POST
REF.
DEBIT
ACCOUNT
CREDIT
11
BALANCE
DEBIT
CREDIT
20—
Mar. 31 Balance
31
Apr. 15
May
2
2
2
DATE

J18
J18
J18
J18
J18
735
512
52
148
58
7
7
2
0
0
69
86
95
34
74
FICA TAXES PAYABLE—OASDI
ACCOUNT
ITEM
20—
Mar. 15 Balance
31
31
Apr. 15
POST
REF.

J18
J18
J18
7
3
7
0
5
DEBIT
CREDIT
5 7 9 70
5 7 9 70
2 2 8 7 80
4
3
2
2
2
2
1
4
9
8
7
6
9
6
4
9
4
9
8
2
9
7
9
1
4
6
8
5
5
4
19
50
64
69
35
61
ACCOUNT
20
BALANCE
DEBIT
CREDIT
1 1 2 8 40
1 7 0 8 10
2 2 8 7 80
FICA TAXES PAYABLE—HI
ACCOUNT
DATE
ITEM
20—
Mar. 15 Balance
31
31
Apr. 15
ITEM
20—
Mar. 15 Balance
31
May
2
ITEM
20—
Mar. 15 Balance
31
May
2
ITEM
20—
Mar. 15 Balance
31
Apr. 15
ITEM
20—
Mar. 15 Balance
31
May
2
ITEM
20—
Mar. 15 Balance
31
CREDIT
POST
REF.

J18
J18
POST
REF.

J18
J18
POST
REF.

J18
J18
POST
REF.

J18
ITEM
20—
Mar. 15 Balance
31
POST
REF.

J18
BALANCE
DEBIT
CREDIT
4 4 8 15
5 2 2 95
7 4 80
5 2 2 95
DEBIT
23
ACCOUNT
CREDIT
BALANCE
DEBIT
CREDIT
1 2 1 8 54
1 4 8 0 34
2 6 1 80
1 4 8 0 34
DEBIT
25
ACCOUNT
CREDIT
BALANCE
DEBIT
CREDIT
1 1 3 0 00
2 3 0 5 00
1 1 7 5 00
2 3 0 5 00
DEBIT
26
ACCOUNT
CREDIT
BALANCE
DEBIT
CREDIT
4 7 8 71
5 8 0 74
1 0 2 03
5 8 0 74
DEBIT
ACCOUNT
CREDIT
DEBIT
1 0 5 1 88
51
BALANCE
DEBIT
CREDIT
4 3 5 1 9 20
5 2 8 6 9 20
9 3 5 0 00
PAYROLL TAXES
ACCOUNT
DATE
DEBIT
22
ACCOUNT
WAGES AND SALARIES
ACCOUNT
DATE

J18
J18
2 6 3 90
3 9 9 48
5 3 5 06
5 3 5 06
EMPLOYEES SIT PAYABLE
ACCOUNT
DATE
POST
REF.
BALANCE
DEBIT
CREDIT
1 3 5 58
1 3 5 58
EMPLOYEES FIT PAYABLE
ACCOUNT
DATE
CREDIT
SUTA TAXES PAYABLE
ACCOUNT
DATE

J18
J18
J18
DEBIT
FUTA TAXES PAYABLE
ACCOUNT
DATE
POST
REF.
21
ACCOUNT
ACCOUNT
CREDIT
BALANCE
DEBIT
CREDIT
4 8 9 5 91
5 9 4 7 79
52