The Following Payroll Liability Accounts Are Included in the Ledger

question 196

Essay

The following payroll liability accounts are included in the ledger of Clementine Company on January 1, 2014: $$\begin{array} { l c } \text { FICA Taxes Payable } & \$ 1,600 \\\text { Federal Income Taxes Payable } & 4,000 \\\text { State Income Taxes Payable } & 665 \\\text { Federal Unemployment Taxes Payable } & 175 \\\text { State Unemployment Taxes Payable } & 1,190 \\\text { Union Dues Payable } & 400 \\\text { Health Insurance Payable } & 5,000 \\\text { U.S. Savings Bonds Payable } & 1,000\end{array}$$ In January, the following transactions occurred:
Jan. 9 Sent a check for $5,000 to Blue Cross and Blue Shield.
11 Deposited a check for $5,600 in Federal Reserve Bank for FICA taxes and federal income taxes withheld.
14 Sent a check for $400 to the union treasurer for union dues.
18 Paid state income taxes withheld from employees.
21 Paid state and federal unemployment taxes.
22 Purchased U.S. Savings Bonds for employees by writing a check for $1,000.
Instructions
Journalize the January transactions

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Definitions:

Pay-As-You-Go Basis

A financial approach where expenses or charges are paid for at the time of purchase or consumption, rather than on credit.

Fund Benefits

Refers to the advantages or financial aid provided by an investment fund to its investors.

Qualified Plan

A retirement plan that meets the requirements of the Internal Revenue Code and ERISA, offering tax benefits to both employers and employees.

Tax Deductions

Expenses that can be subtracted from gross income to reduce the total amount of income tax owed.