Lynden Company has the following balances in its general ledger as of June 1 of this year:
a. FICA Taxes Payable (liability for May), $1,719.40 (total for employee and employer).
b. Employees’ Federal Income Tax Payable (liability for May), $995.00.
c. Federal Unemployment Tax Payable (liability for April and May), $380.00.
d. State Unemployment Tax Payable (liability for April and May), $1,205.75.
The company completed the following transactions involving the payroll during June and July:
June 13 Issued check for $2,714.40, payable to Security Bank, for the monthly deposit of May FICA taxes and employees’ federal income tax withheld.
30 Recorded the payroll entry in the general journal from the payroll register for June. The payroll register has the following column totals:
Sales salaries $11,490.00
Office salaries 5,147.00
Total earnings $16,637.00
Employees’ federal income tax deductions $ 1,725.00
Employees’ Social Security tax deductions 698.75
Employees’ Medicare tax deductions 241.24
Total deductions 2,664.99
Net pay $13,927.01
30 Recorded payroll taxes. FICA Social Security rates are 4.2 percent (employee) and 6.2 percent (employer). The employer matches the employee’s FICA Medicare rate of 1.45 percent. State unemployment tax is 5.4 percent, and federal unemployment tax is 0.6 percent. At this time, all employees’ earnings are taxable for FICA and unemployment taxes.
30 Issued check for $13,972.01 from Cash—Payroll Bank Account to pay salaries for the month.
July 14 Issued check for $3,937.72, payable to Security Bank, for the monthly deposit of June FICA taxes (employee and employer) and employees’ federal income tax withheld.
31 Issued check for $2,104.15, payable to the State Tax Commission, for state unemployment tax for April, May, and June. The check was accompanied by the quarterly tax return.
31 Issued check for $479.82, payable to Security Bank, for the deposit of federal unemployment tax for April, May, and June.
Record the transactions on pages 77–78 of the general journal.