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Study Guide 13
SECOND REVISED
Perfect Score
Name Analyzing Payroll Records Analyzing Transactions Affecting Payroll Analyzing Form W-2 Total
15 5 10 30
Your Score
Pts. Pts. Pts. Pts.
Part One—Analyzing Payroll Records Directions: For each of the following items, select the choice that best completes the statement. Print the letter identifying your choice in the Answers column.
Answers
1. All the payroll information needed to prepare payroll and tax reports is found on (A) Form W-4 and the employee earnings record (B) Form W-4 and the payroll register (C) the payroll register and the employee earnings record (D) Form W-4. (p. 368) 2. The payroll journal entry is based on the totals of the (A) Earnings Total column, each deduction column, and the Net Pay column (B) Earnings Total, Earnings Regular, Earnings Overtime, and Deductions Total columns (C) Earnings Regular, Earnings Overtime, and Deductions Total columns (D) Earnings Total, Earnings Regular, and Earnings Overtime Total columns. (p. 369) 3. The Earnings Total column total is journalized as a debit to (A) Cash (B) Salary Expense (C) Employee Income Tax Payable (D) Social Security Tax Payable. (p. 370) 4. The total of the Federal Income Tax column of a payroll register is credited to (A) a revenue account (B) an expense account (C) a liability account (D) an asset account. (p. 370) 5. The total of the Net Pay column of the payroll register is credited to (A) a revenue account (B) an expense account (C) an asset account (D) a liability account. (p. 370) 6. When a semimonthly payroll is paid, the credit to Cash is equal to the (A) total earnings of all employees (B) total deductions for income tax and social security tax (C) total deductions (D) net pay of all employees. (p. 370) 7. Employer business taxes are (A) assets (B) liabilities (C) revenues (D) expenses. (p. 373) 8. Payroll taxes that are paid by both the employer and the employee are (A) federal unemployment tax and social security tax (B) federal unemployment tax and Medicare tax (C) social security tax and Medicare tax (D) federal income tax, social security tax, and Medicare tax. (p. 373) 9. A federal tax used for state and federal administrative expenses of the unemployment program is the (A) social security tax (B) Medicare tax (C) federal unemployment tax (D) state unemployment tax. (p. 375) 10. A state tax used to pay benefits to unemployed workers is the (A) social security tax (B) Medicare tax (C) unemployment tax (D) state unemployment tax. (p. 375) 11. To record the employer payroll taxes expense, the following accounts are credited: (A) Payroll Taxes Expense and Employee Income Tax Payable (B) Employee Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable— Federal, and Unemployment Tax Payable—State (C) Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable—Federal, and Unemployment Tax Payable— State (D) none of these. (p. 376) 12. Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee an (A) IRS Form W-4 (B) IRS Form W-2 (C) IRS Form W-3 (D) IRS Form 941. (p. 378) 13. Each employer is required by law to report payroll taxes on an (A) IRS Form W-4 (B) IRS Form 941 (C) IRS Form W-2 (D) IRS Form W-3. (p. 380) 14. To record the total federal tax payment for employee income tax, social security tax, and Medicare tax, the account credited is (A) Cash (B) Employee Income Tax Payable (C) Social Security Tax Payable (D) Medicare Tax Payable. (p. 385) 15. To record the payment of federal unemployment tax, the account debited is (A) a revenue account (B) an expense account (C) a liability account (D) an asset account. (p. 387) COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
1.
C
2.
A
3.
B
4.
C
5.
C
6.
D
7.
D
8.
C
9.
C
10.
D
11.
C
12.
B
13.
B
14.
A
15.
C
Chapter 13 • 323
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Part Two—Analyzing Transactions Affecting Payroll Directions: Analyze each of the following transactions into debit and credit parts. Print the letters identifying your choices in the proper Answers column.
Account Title
Answers Debit Credit
Transaction 1. Paid cash for semimonthly payroll. (p. 371)
F
A, B, G, D C, H, K
2. Recorded employer payroll taxes expense. (p. 376)
E
G, D, I, J
C. Health Insurance Premiums Payable
3. Paid cash for liability for employee income tax, social security tax, and Medicare tax. (p. 385)
B, G, D
A
D. Medicare Tax Payable
4. Paid cash for federal unemployment tax liability. (p. 387)
I
A
5. Paid cash for state unemployment tax liability. (p. 387)
J
A
A. Cash B. Employee Income Tax Payable
E. Payroll Taxes Expense F. Salary Expense G. Social Security Tax Payable H. U.S. Savings Bonds Payable I.
Unemployment Tax Payable—Federal
J.
Unemployment Tax Payable—State
K. United Way Donations Payable
324 • Working Papers
CENTURY 21 ACCOUNTING, 9TH EDITION
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SECOND REVISED
Name
Date
Class
Part Three—Analyzing Form W-2 Directions: Analyze the following statements about a Form W-2, Wage and Tax Statement. Use the Form W-2 below to answer the specific questions about Rick Selby. Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. (p. 378)
31-0429632
24,843.00
648.00
Hobby Shack, Inc. 1420 College Plaza Atlanta, GA 30337-1726
24,843.00
1,540.27
24,843.00
360.22
450-70-6432 Rick E.
Selby
1625 Northland Drive Clarkdale, GA 30020-6523
Answers 1. Rick Selby’s total salary is more than his total social security salary.
1.
F
2. This Form W-2 shows Rick Selby’s net pay for the entire year.
2.
F
3. The amount withheld for Mr. Selby’s social security and Medicare tax was more than the amount withheld for his federal income tax.
3.
T
4. State income tax was withheld from Mr. Selby’s salary.
4.
F
5. All deductions from Mr. Selby’s salary are shown on his Form W-2.
5.
F
6. This Form W-2 would indicate whether Mr. Selby had more than one employer during the year.
6.
F
7. If an employee works for several employers during the year, that employee must receive a Form W-2 from each employer.
7.
T
8. An employer is required to provide employees with a Form W-2 no later than January 31 of the year following the one for which the report has been completed.
8.
T
9. When Rick Selby files his federal income tax return, he must attach Copy A of Form W-2 to his return.
9.
F
10.
T
10. Businesses in states with state income tax must prepare additional copies of Form W-2. COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Chapter 13 • 325
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SECOND REVISED
Study Skills Improving Your Ability to Remember Do you sometimes find it difficult to remember things? Do you occasionally forget important points in a lesson? Most of us do. It is very common to forget things, but we must make a special effort to remember important things. What can we do to improve our memory? There are a number of things we can do to help us remember. Grouping Grouping is a technique that makes learning easier. If we group similar information, we will be able to remember it better. For example, suppose you are studying geography and want to learn each of the states in the United States. You can group the New England states, the Middle Atlantic states, or the Southwestern states. This will help you to remember them more easily. A similar principle works when we try to remember other types of information. Let’s suppose we want to remember a string of numbers like a Social Security number, 142869426. If we try to remember each single number, it is quite difficult. However, if we group the numbers, it becomes easier: 142-86-9426. It is easier to remember three groups of numbers rather than nine individual numbers. Practice and Reinforcement Suppose that you want to call a friend on the phone. You look up the number in the directory, and find that it is 453-1191. By grouping the first three numbers and the last four, you will be able to remember it for a short time. However, if you try to recall the number later, you will likely not be able to do so. To remember a number or a fact for a long period of time, you must practice using it. You should repeat it silently as well as aloud and practice using it in as many ways as possible. The more you use information, the more likely you will remember it. Your learning practice sessions should not be too long, and they should be spaced over a number of days. Spaced practice is less tiring, and the frequent review helps to decrease forgetting. A great deal of practice at one time is much less useful than spaced practice. This is why it is so difficult to learn material if you leave all your work to be done on the night before an exam. Work to Remember Better To remember better, work every day in sessions of a reasonable length. Make your study personal and meaningful. If you do, you will be able to remember facts much more easily, and your grades will very likely improve.
326 • Working Papers
CENTURY 21 ACCOUNTING, 9TH EDITION
Chapter 13
5 6 7 8 9
6
7
8
9
Date
5
4
4
3
1 8 2 70
Employee Income Tax Payable
Medicare Tax Payable
1
3
10 4 5 0 10 7 8 1 20
CREDIT
4 CASH CREDIT
15 ACCOUNTS PAYABLE DEBIT
PAGE 3
Social Security Tax Payable
12 6 0 0 00
DEBIT
GENERAL
2
2
455
POST. REF.
1
1 1 8 6 00
July 15 Salary Expense
ACCOUNT TITLE
2
1
DATE
CK. NO.
CASH PAYMENTS JOURNAL
10,450.10
182.70
781.20
Name
20 – –
Cash
Medicare Tax Payable
Social Security Tax Payable
1,186.00
Employee Income Tax Payable
12,600.00
Salary Expense
13-1
2.
1.
Recording a payroll
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SECOND REVISED
Class
WORK TOGETHER, p. 372
Payroll Accounting, Taxes, and Reports • 327
328 • Working Papers
20 – –
5 6 7 8 9
6
7
8
9
4
5
3
4
Employee Income Tax Payable
2 0 6 77
1
Medicare Tax Payable
11 6 0 7 11
CASH CREDIT
3
CREDIT
4
16 ACCOUNTS PAYABLE DEBIT
PAGE 3
8 8 4 12
14 2 6 0 00
DEBIT
GENERAL
2
Social Security Tax Payable
POST. REF.
1
2
628
CK. NO.
CASH PAYMENTS JOURNAL
11,607.11
206.77
884.12
1 5 6 2 00
Aug. 31 Salary Expense
ACCOUNT TITLE
2
1
DATE
Cash
Medicare Tax Payable
Social Security Tax Payable
1,562.00
Employee Income Tax Payable
14,260.00
Salary Expense
13-1
2.
1.
Recording a payroll
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SECOND REVISED
ON YOUR OWN, p. 372
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Name
13-2
Date
Class
WORK TOGETHER, p. 377
Recording employer payroll taxes 1., 2.
Employee Name
Accumulated Earnings, April 30
Total Earnings for May 1–15 Pay Period
Beltran, Tamela C.
$5,100.00
$ 637.50
Cintron, Irma V.
$7,350.00
$920.00
Unemployment Taxable Earnings
$637.50 -0-
$1,557.50
Totals
$637.50
$
96.57 22.58 5.10 34.43 $ 158.68
Social Security Tax Payable, 6.2% Medicare Tax Payable, 1.45% Unemployment Tax Payable—Federal, 0.8% Unemployment Tax Payable—State, 5.4% Total Payroll Taxes
3. GENERAL JOURNAL DATE
DOC. NO.
ACCOUNT TITLE
20 – –
1
PAGE
May 15 Payroll Taxes Expense
M46
POST. REF.
DEBIT
10 CREDIT
1 5 8 68
1
2
Social Security Tax Payable
9 6 57
2
3
Medicare Tax Payable
2 2 58
3
4
Unemployment Tax Payable—Federal
5 10
4
5
Unemployment Tax Payable—State
3 4 43
5
6
6
7
7
8
8
9
9
10
10
Chapter 13
Payroll Accounting, Taxes, and Reports • 329
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13-2
SECOND REVISED
ON YOUR OWN, p. 377
Recording employer payroll taxes 1., 2.
Employee Name
Accumulated Earnings, May 31
Total Earnings for June 1–15 Pay Period
Unemployment Taxable Earnings
Caldwell, Sarah H.
$6,020.00
$ 580.00
$ 580.00
Easley, Benjamin P.
5,450.00
620.00
620.00
Franks, John J.
8,420.00
1,000.00
—
Totals
$2,200.00
$1,200.00
$136.40
Social Security Tax Payable, 6.2% Medicare Tax Payable, 1.45% Unemployment Tax Payable—Federal, 0.8% Unemployment Tax Payable—State, 5.4% Total Payroll Taxes
31.90 9.60 64.80 $242.70
3. GENERAL JOURNAL DATE
ACCOUNT TITLE
20 – –
1
June 15 Payroll Taxes Expense
2
Social Security Tax Payable
3
Medicare Tax Payable
4
Unemployment Tax Payable—Federal
5
Unemployment Tax Payable—State
PAGE DOC. NO.
M83
POST. REF.
DEBIT
12 CREDIT
2 4 2 70
1
1 3 6 40
2
3 1 90
3
9 60
4
6 4 80
5
6
6
7
7
8
8
9
9
10
10
330 • Working Papers
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Name
13-3
Date
Class
WORK TOGETHER, p. 382
Reporting withholding and payroll taxes 1.
March 31, 20- -
Audio Solutions
70-7818356 625 Sandpiper Street
Ormond Beach, FL 32074-4060
6 33,800 2,366 -02,366 4,191 -0980
33,800 00 -033,800 00
00 00 00 20 20
5,171 40 -05,171 40 7,537 40 -07,537 40 7,537 40 -0-
X
2,328.32
2,443.88
2,765.20
Student Name
Student Name, Manager
Chapter 13
7,537.40
4/24/--
Payroll Accounting, Taxes, and Reports • 331
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13-3
SECOND REVISED
ON YOUR OWN, p. 382
Reporting withholding and payroll taxes 1.
June 30, 20- -
Audio Solutions
70-7818356 625 Sandpiper Street
Ormond Beach, FL 32074-4060
6 34,480 2,413 -02,413 4,275 -0999
34,480 00 -034,480 00
00 00 00 52 92
5,275 44 -05,275 44 7,688 44 -07,688 44 7,688 44 -0-
X
2,622.28
2,635.46
Student Name 332 • Working Papers
2,430.70
Student Name, Manager
7,688.44
7/22/--
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Chapter 13
13 14 15 16 17 18 19 20 21 22
14
15
16
17
18
19
20
21
22
11
11
13
10
10
12
9
9
Name
12
8
8
5
4
7
3 4 5 4 34
5 1 1 75
7
3 4 5 4 34
5 1 1 75
3
1
6 1 8 50
4 6 4 8 60
2
CREDIT
5 CASH CREDIT
PURCHASES DISCOUNT CREDIT
ACCOUNTS PAYABLE DEBIT
14
2 6 4 4 10
1 3 8 6 00
DEBIT
GENERAL
PAGE 4
3
6
402
30 Unemployment Tax Payable—State
5
POST. REF.
2
6
401
30 Unemployment Tax Payable—Federal
Medicare Tax Payable
3
383
4
Social Security Tax Payable
Apr. 15 Employee Income Tax Payable
ACCOUNT TITLE
2
1
20 – –
CK. NO.
1
CASH PAYMENTS JOURNAL
13-4
DATE
1., 2.
Paying withholding and payroll taxes
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SECOND REVISED
Date Class
WORK TOGETHER, p. 389
Payroll Accounting, Taxes, and Reports • 333
334 • Working Papers 13 14 15 16 17 18 19 20 21 22
14
15
16
17
18
19
20
21
22
11
11
13
10
10
12
9
9
12
8
8
5
4
7
1 9 2 2 40
2 7 4 80
7
1 9 2 2 40
2 7 4 80
3
1
4 6 9 90
3 5 3 0 70
2
CREDIT
5 CASH CREDIT
PURCHASES DISCOUNT CREDIT
ACCOUNTS PAYABLE DEBIT
19
2 0 0 8 80
1 0 5 2 00
DEBIT
GENERAL
PAGE 4
3
6
712
31 Unemployment Tax Payable—State
5
POST. REF.
2
6
711
31 Unemployment Tax Payable—Federal
Medicare Tax Payable
3
678
4
Social Security Tax Payable
July 15 Employee Income Tax Payable
2
1
20 – –
ACCOUNT TITLE
CK. NO.
1
CASH PAYMENTS JOURNAL
13-4
DATE
1., 2.
Paying withholding and payroll taxes
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ON YOUR OWN, p. 389
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
9
8 7 58
Medicare Tax Payable
U.S. Savings Bonds Payable
9
10
Chapter 13
13 14 15 16 17 18 19 20 21 22 23
14
15
16
17
18
19
20
21
22
23
12
12
Name
13
11
11
10
8
3 7 4 48
Social Security Tax Payable
8
1 5 0 00
7
6
5 7 2 00
4 8 5 5 94
Employee Income Tax Payable
6 0 4 0 00
7
568
5
1 8 0 00
U.S. Savings Bonds Payable
5
31 Salary Expense
4
1 0 1 07
Medicare Tax Payable
4
6
3
4 3 2 14
Social Security Tax Payable
1
3
5 5 7 1 79
2
6 9 7 0 00
CREDIT
5 CASH CREDIT
PURCHASES DISCOUNT CREDIT
ACCOUNTS PAYABLE DEBIT
15
6 8 5 00
547
DEBIT
GENERAL
PAGE 4
3
Employee Income Tax Payable
July 15 Salary Expense
POST. REF.
2
2
1
20 – –
ACCOUNT TITLE
CK. NO.
1
CASH PAYMENTS JOURNAL
13-1
DATE
Recording a payroll
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SECOND REVISED
Date Class
APPLICATION PROBLEM, p. 391
Payroll Accounting, Taxes, and Reports • 335
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13-2
SECOND REVISED
APPLICATION PROBLEM, pp. 391, 392
Recording employer payroll taxes 1., 2., 4.
Accumulated Earnings, March 31
Total Earnings for April 1–15 Pay Period
Unemployment Taxable Earnings, April 15
Accumulated Earnings, April 15
Total Earnings for April 16–30 Pay Period
Unemployment Taxable Earnings, April 30
Bolser, Frank T.
$4,860.00
$ 810.00
$ 810.00
$5,670.00
$ 795.00
$ 795.00
Denham, Beth R.
$5,670.00
$ 945.00
$ 945.00
$6,615.00
$ 980.00
$ 385.00
Harjo, Teresa S.
$7,500.00
$1,250.00
–0–
$8,750.00
$1,250.00
–0–
Knutzen, John L.
$3,720.00
$ 620.00
$ 620.00
$4,340.00
$ 635.00
$ 635.00
Prescott, Laura F.
$4,560.00
$ 760.00
$ 760.00
$5,320.00
$ 740.00
$ 740.00
Schmidt, Ian T.
$6,900.00
$1,150.00
$ 100.00
$8,050.00
$1,125.00
–0–
Totals
$5,535.00
$3,235.00
Totals
$5,525.00
$2,555.00
Employee Name
Social Security Tax Payable Medicare Tax Payable Unemployment Tax Payable—Federal Unemployment Tax Payable—State
Social Security Tax Payable Medicare Tax Payable Unemployment Tax Payable—Federal Unemployment Tax Payable—State
$343.17 $ 80.26 25.88 174.69
$342.55 80.11 20.44 137.97
3., 5. GENERAL JOURNAL DATE
ACCOUNT TITLE
20 – –
1
Apr. 15 Payroll Taxes Expense
2
Social Security Tax Payable
3
PAGE DOC. NO.
M69
POST. REF.
DEBIT
16 CREDIT
6 2 4 00
1
3 4 3 17
2
Medicare Tax Payable
8 0 26
3
4
Unemployment Tax Payable—Federal
2 5 88
4
5
Unemployment Tax Payable—State
1 7 4 69
5
6
30 Payroll Taxes Expense
7
Social Security Tax Payable
8 9 10
M76
5 8 1 07
6
3 4 2 55
7
Medicare Tax Payable
8 0 11
8
Unemployment Tax Payable—Federal
2 0 44
9
1 3 7 97
10
Unemployment Tax Payable—State
11
11
12
12
336 • Working Papers
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Name
13-3
Date
Class
APPLICATION PROBLEM, p. 392
Reporting withholding and payroll taxes
June 30, 20- -
Eagle Toys, Inc.
80-7818356 784 McDonald Street
Mesa, AZ 85201-5874
5 29,420 2,059 -02,059 3,648
29,420 00 -029,420 00
00 00 00 08
853 18 4,501 26 -04,501 26 6,560 26 -06,560 26 6,560 24 02
X
2,056.40
2,275.44
2,228.40
Student Name
Student Name, Manager
Chapter 13
6,560.24
7/21/--
Payroll Accounting, Taxes, and Reports • 337
338 • Working Papers 18 19 20 21 22 23 24
18
19
20
21
22
23
24
16
15
14
17
3. State Unemployment Tax $52,210.00 5.4% $2,819.34
2. Federal Unemployment Tax $52,210.00 0.8% $417.68
13
12
17
16
15
14
13
$ 17,560.00 2.9% $ 509.24
Medicare Tax
12
11
10
10
1. Social Security Tax $17,560.00 12.4% $2,177.44
9
9
11
8
5
4
3
2
1
8
2 8 1 9 34
4 1 7 68
4 2 3 4 68
7
CREDIT
5 CASH CREDIT
PURCHASES DISCOUNT CREDIT
ACCOUNTS PAYABLE DEBIT
8
7
2 8 1 9 34
4 1 7 68
5 0 9 24
2 1 7 7 44
1 5 4 8 00
DEBIT
GENERAL
PAGE 4
3
6
831
30 Unemployment Tax Payable—State
5
POST. REF.
2
6
830
30 Unemployment Tax Payable—Federal
Medicare Tax Payable
3
813
4
Social Security Tax Payable
Apr. 15 Employee Income Tax Payable
ACCOUNT TITLE
2
1
20 – –
CK. NO.
1
CASH PAYMENTS JOURNAL
13-4
DATE
1., 2., 3.
Paying withholding and payroll taxes
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SECOND REVISED
APPLICATION PROBLEM, pp. 392, 393
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
20 – –
GENERAL
Chapter 13 2 2 2 9 77
7 5 00
U.S. Savings Bonds Payable
24
22 3 0 8 04
7 6 56
Medicare Tax Payable
23
15 Totals
3 2 7 36
Social Security Tax Payable
22
25
2 7 4 00
5 2 8 0 00
Employee Income Tax Payable
488
3 0 6 24
1 3 0 9 44
5 4 9 00
21
15 Salary Expense
Medicare Tax Payable
19
487
1 6 5 8 88
2 4 5 76
20 0 7 8 27
4 5 2 7 08
2 1 6 4 68
1 6 5 8 88
2 4 5 76
25
24
23
22
21
20
19
18
17
16
15
Date
20
Social Security Tax Payable
18
June 15 Employee Income Tax Payable
463
31 Unemployment Tax Payable—State
16
17
462
31 Unemployment Tax Payable—Federal
6 0 00
U.S. Savings Bonds Payable
14
15
13
7 7 00
Medicare Tax Payable
13
Name
14
12
3 2 9 22
Social Security Tax Payable
10
12
4 5 6 7 78
11
5 3 1 0 00 2 7 6 00
461
Employee Income Tax Payable
31 Salary Expense
11
10
9
15 U.S. Savings Bonds Payable
9
3 0 0 00
8
6 0 00
U.S. Savings Bonds Payable
8
3 0 0 00
7
7 6 13
Medicare Tax Payable
7
423
6
4
3
2
1
3 2 5 50
4 5 1 5 37
2 0 9 8 72
CASH CREDIT
Social Security Tax Payable
PURCHASES DISCOUNT CREDIT
ACCOUNTS PAYABLE DEBIT
6
CREDIT
14
5
5 2 5 0 00
2 9 6 96
1 2 6 9 76
5 3 2 00
DEBIT
PAGE 5
2 7 3 00
POST. REF.
4
3
Employee Income Tax Payable
422
421
CK. NO.
2
5
15 Salary Expense
Medicare Tax Payable
3
4
Social Security Tax Payable
May15 Employee Income Tax Payable
2
1
ACCOUNT TITLE
1
CASH PAYMENTS JOURNAL
13-5
DATE
1., 2.
Journalizing payroll transactions
BTE_Ch13-327-346.qxd 11/7/07 3:33 PM Page 339
SECOND REVISED
Class
MASTERY PROBLEM, p. 393
Payroll Accounting, Taxes, and Reports • 339
BTE_Ch13-327-346.qxd 11/7/07 3:33 PM Page 340
13-5
SECOND REVISED
MASTERY PROBLEM (concluded)
1. GENERAL JOURNAL DATE
ACCOUNT TITLE
20 – –
1
May 15 Payroll Taxes Expense
PAGE DOC. NO.
M42
POST. REF.
DEBIT
10 CREDIT
7 2 7 13
1
3 2 5 50
2
Medicare Tax Payable
7 6 13
3
4
Unemployment Tax Payable—Federal
4 2 00
4
5
Unemployment Tax Payable—State
2 8 3 50
5
2
Social Security Tax Payable
3
6
31 Payroll Taxes Expense
6 7
Medicare Tax Payable
7 7 00
8
Unemployment Tax Payable—Federal
4 2 48
9
2 8 6 74
10
Social Security Tax Payable
8 9
11
7 3 5 44 3 2 9 22
7
10
M46
Unemployment Tax Payable—State June 15 Payroll Taxes Expense
M53
7 3 1 28
11
3 2 7 36
12
Medicare Tax Payable
7 6 56
13
14
Unemployment Tax Payable—Federal
4 2 24
14
15
Unemployment Tax Payable—State
2 8 5 12
15
12
Social Security Tax Payable
13
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
25
25
340 • Working Papers
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Chapter 13
2180
U.S. Savings Bonds Payable
11
2 8 8 9 8 51
20
3 7 4 9 84
✔
3 2 6 4 8 35
19
1 2 5 00 2180
U.S. Savings Bonds Payable
19
18
1 7 9 22 2140
Medicare Tax Payable
18
17
2130
Social Security Tax Payable
17
7 6 6 32
15
14
13
16
1 0 4 7 3 46
11
1 2 5 00
12
10
1 7 6 90 2 6 7 1 60
9
7
6
5
4
3
2
1
7 5 6 40
1 0 3 3 6 70
1 7 8 2 00
2 6 4 00
2 9 9 5 75
3 7 5 00
8 1 6 00 2120
Employee Income Tax Payable
28 Carried Forward
5 CASH CREDIT
1
Date
20
3 5 3 80
1 5 1 2 80
8 0 5 00
232 6170 1 2 3 6 0 00
16
28 Salary Expense
2140
Medicare Tax Payable
14
15
2130
Social Security Tax Payable
13
222 2120
2140
Medicare Tax Payable
10
Feb. 15 Employee Income Tax Payable
2130
Social Security Tax Payable
9
PURCHASES DISCOUNT CREDIT
ACCOUNTS PAYABLE DEBIT
PAGE
8
4
3
8 0 5 00
CREDIT
2
Name
12
2120
Employee Income Tax Payable
8
216 6170 1 2 2 0 0 00
31 Salary Expense
7
1 7 8 2 00
211 2160
31 Unemployment Tax Payable—State
6
2 6 4 00
210 2150
1 7 6 25
31 Unemployment Tax Payable—Federal
2140
Medicare Tax Payable
4
1 5 2 7 50
1 2 9 2 00
3 7 5 00
DEBIT
GENERAL
5
2130
204 2120
195 2180
Social Security Tax Payable
15 Employee Income Tax Payable
Jan. 2 U.S. Savings Bonds Payable
ACCOUNT TITLE
POST. REF.
3
2
1
20 – –
CK. NO.
1
CASH PAYMENTS JOURNAL
13-6
DATE
1., 2.
Journalizing and posting payroll transactions
BTE_Ch13-327-346.qxd 11/7/07 3:33 PM Page 341
SECOND REVISED
Class
CHALLENGE PROBLEM, pp. 393, 394
Payroll Accounting, Taxes, and Reports • 341
342 • Working Papers
7 3 5 32 1 7 1 97 9 4 88 6 4 0 44
2130 2140 2150 2160
Medicare Tax Payable Unemployment Tax Payable—Federal Unemployment Tax Payable—State
13 14 15
16 17 18 19 20 21 22 23 24 25
17 18 19 20 21 22 23 24 25
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
16
12
Social Security Tax Payable
1 6 4 2 61
6 6 7 44
2160
Unemployment Tax Payable—State
10
M116 6150
9 8 88
2150
Unemployment Tax Payable—Federal
9
Mar. 31 Payroll Taxes Expense
1 7 9 22
2140
Medicare Tax Payable
8
11
7 6 6 32
2130
Social Security Tax Payable
1 7 1 1 86
7
M107 6150
6 5 8 80
2160
Unemployment Tax Payable—State
5
Feb. 28 Payroll Taxes Expense
9 7 60
2150
Unemployment Tax Payable—Federal
4
6
1 7 6 90
2140
Medicare Tax Payable
3
CREDIT
7 5 6 40
1 6 8 9 70
DEBIT
2130
M98 6150
POST. REF.
1
Social Security Tax Payable
Jan. 31 Payroll Taxes Expense
DOC. NO.
PAGE
2
1
20 – –
ACCOUNT TITLE
GENERAL JOURNAL
13-6
DATE
1., 3.
BTE_Ch13-327-346.qxd 11/7/07 3:33 PM Page 342
SECOND REVISED
CHALLENGE PROBLEM (continued)
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
2140 2180
Medicare Tax Payable
U.S. Savings Bonds Payable
8
9
Chapter 13
16
19
46 8 8 0 92
19
5 5 6 5 13
15
18
52 4 4 6 05
1 9 6 6 68
14
18
30 Totals
16
1 9 6 6 68
2 9 1 36
13
12
11
10
9
8
7
6
5
4
3
2
1
17
277 2160
30 Unemployment Tax Payable—State
15
2 9 1 36
3 4 3 94
2 5 9 7 58
3 7 5 00
10 0 4 4 71
2 7 0 7 08
28 8 9 8 51
5 CASH CREDIT
PURCHASES DISCOUNT CREDIT
2
ACCOUNTS PAYABLE DEBIT
PAGE 4
3
17
276 2150
30 Unemployment Tax Payable—Federal
2140
Medicare Tax Payable
13
1 4 7 0 64
7 8 3 00
3 7 5 00
1 2 5 00
1 7 1 97
7 3 5 32
7 8 3 00
3 7 4 9 84
CREDIT
2
Name
14
2130
270 2120
Social Security Tax Payable
15 Employee Income Tax Payable
12
11
259 2180
2130
Social Security Tax Payable
7
Apr. 1 U.S. Savings Bonds Payable
2120
Employee Income Tax Payable
10
3 5 8 44
1 5 3 2 64
8 1 6 00
32 6 4 8 35
DEBIT
GENERAL
258 6170 11 8 6 0 00
6
31 Salary Expense
2140
Medicare Tax Payable
4
5
2130
237 2120
Social Security Tax Payable
Mar. 15 Employee Income Tax Payable
2
✔
POST. REF.
3
Feb. 28 Brought Forward
ACCOUNT TITLE
1
20 – –
CK. NO.
1
CASH PAYMENTS JOURNAL
13-6
DATE
2., 3., 4.
BTE_Ch13-327-346.qxd 11/7/07 3:33 PM Page 343
SECOND REVISED
Date Class
CHALLENGE PROBLEM (continued)
Payroll Accounting, Taxes, and Reports • 343
BTE_Ch13-327-346.qxd 11/7/07 3:33 PM Page 344
13-6
SECOND REVISED
CHALLENGE PROBLEM (continued)
1., 3.
GENERAL LEDGER ACCOUNT
Employee Income Tax Payable
DATE
ITEM
20 – –
ACCOUNT NO.
POST. REF.
CP1
31
CP1
Feb. 15
CP1
28
CP1
Mar. 15
CP2
31
CP2
Apr. 15
CP2
ACCOUNT
BALANCE DEBIT
CREDIT DEBIT
✔
Jan. 1 Balance 15
ITEM
20 – –
1 2 9 2 00 8 0 5 00
8 0 5 00
8 1 6 00
8 1 6 00
7 8 3 00
7 8 3 00
8 0 5 00 8 1 6 00 7 8 3 00
ACCOUNT NO.
POST. REF.
2130
BALANCE DEBIT
CREDIT DEBIT
✔
Jan. 1 Balance 31
CREDIT
1 2 9 2 00
Social Security Tax Payable
DATE
2120
CREDIT
1 5 2 7 50
G1
7 5 6 40
2 2 8 3 90
15
CP1
31
CP1
7 5 6 40
1 5 1 2 80
Feb. 28
G1
7 6 6 32
2 2 7 9 12
15
CP1
28
CP1
7 6 6 32
1 5 3 2 64
Mar. 31
G1
7 3 5 32
2 2 6 7 96
15
CP2
31
CP2
Apr. 15
CP2
ACCOUNT
1 5 2 7 50
7 5 6 40
1 5 1 2 80
7 6 6 32
1 5 3 2 64
7 3 5 32 7 3 5 32
1 4 7 0 64
1 4 7 0 64
Medicare Tax Payable
DATE 20 – –
Jan. 1 Balance 31
ITEM
ACCOUNT NO.
POST. REF.
2140
BALANCE DEBIT
CREDIT DEBIT
✔
CREDIT
1 7 6 25
G1
1 7 6 90
3 5 3 15
15
CP1
31
CP1
1 7 6 90
3 5 3 80
Feb. 28
G1
1 7 9 22
5 3 3 02
15
CP1
28
CP1
Mar. 31
G1
15
CP2
31
CP2
Apr. 15
CP2
344 • Working Papers
1 7 6 25
1 7 6 90
3 5 3 80
1 7 9 22 1 7 9 22
3 5 8 44
1 7 1 97
5 3 0 41
3 5 8 44
1 7 1 97 1 7 1 97
3 4 3 94
3 4 3 94
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
BTE_Ch13-327-346.qxd 11/7/07 3:33 PM Page 345
SECOND REVISED
Name
13-6
Date
Class
CHALLENGE PROBLEM (concluded) ACCOUNT
Unemployment Tax Payable—Federal
DATE
ACCOUNT NO. BALANCE
POST. REF.
ITEM
20 – –
DEBIT
CREDIT DEBIT
CREDIT
✔
Jan. 1 Balance 31
2150
2 6 4 00
G1
9 7 60
3 6 1 60
31
CP1
Feb. 28
G1
9 8 88
1 9 6 48
Mar. 31
G1
9 4 88
2 9 1 36
Apr. 30
CP2
ACCOUNT
2 6 4 00
9 7 60
2 9 1 36
Unemployment Tax Payable—State
DATE
ITEM
20 – –
ACCOUNT NO. BALANCE
POST. REF.
DEBIT
CREDIT DEBIT
CREDIT
✔
Jan. 1 Balance 31
2160
1 7 8 2 00
G1
6 5 8 80
2 4 4 0 80
31
CP1
Feb. 28
G1
6 6 7 44
1 3 2 6 24
Mar. 31
G1
6 4 0 44
1 9 6 6 68
Apr. 30
CP2
ACCOUNT
1 7 8 2 00
6 5 8 80
1 9 6 6 68
U.S. Savings Bonds Payable
DATE
ITEM
20 – –
ACCOUNT NO. BALANCE
POST. REF.
DEBIT
CREDIT DEBIT
CREDIT
✔
Jan. 1 Balance 2
2180
3 7 5 00
CP1
3 7 5 00
31
CP1
1 2 5 00
1 2 5 00
Feb. 28
CP1
1 2 5 00
2 5 0 00
Mar. 31
CP2
1 2 5 00
3 7 5 00
Apr. 1
CP2
ACCOUNT
3 7 5 00
Payroll Taxes Expense
DATE
ITEM
20 – –
ACCOUNT NO. BALANCE
POST. REF.
DEBIT
CREDIT DEBIT
CREDIT
Jan. 31
G1
1 6 8 9 70
1 6 8 9 70
Feb. 28
G1
1 7 1 1 86
3 4 0 1 56
Mar. 31
G1
1 6 4 2 61
5 0 4 4 17
ACCOUNT
DATE 20 – –
Salary Expense
ACCOUNT NO.
ITEM
6150
POST. REF.
BALANCE DEBIT
CREDIT DEBIT
Jan. 31 Feb. 28
CP1 12 2 0 0 00
12 2 0 0 00
CP1 12 3 6 0 00
24 5 6 0 00
Mar. 31
CP2 11 8 6 0 00
36 4 2 0 00
Chapter 13
6170
CREDIT
Payroll Accounting, Taxes, and Reports • 345
BTE_Ch13-327-346.qxd 11/7/07 3:33 PM Page 346
SECOND REVISED