Study Guide 13

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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 ...

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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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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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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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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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SECOND REVISED

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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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

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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

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