The following payroll liability accounts are included in the ledger of Nordlund Company on January 1, 2011.
FICA Taxes Payable
Federal Income Taxes Payable
State Income Taxes Payable
Federal Unemployment Taxes Payable
State Unemployment Taxes Payable
Union Dues Payable
U.S. Savings Bonds Payable
In January, the following transactions occurred.
Jan. 10 Sent check for $870.00 to union treasurer for union dues.
12 Deposited check for $1,964.60 in Federal Reserve bank for FICA taxes and federal income taxes withheld.
15 Purchased U.S. Savings Bonds for employees by writing check for $360.00.
17 Paid state income taxes withheld from employees.
20 Paid federal and state unemployment taxes.
31 Completed monthly payroll register, which shows office salaries $21,600, store wages $28,400, FICA taxes withheld $4,000, federal income taxes payable $1,958, state income taxes payable $414, union dues payable $400, United Fund contributions payable $1,888, and net pay $41,340.
31 Prepared payroll checks for the net pay and distributed checks to employees.
At January 31, the company also makes the following accrued adjustment for employer payroll taxes: FICA taxes 8%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.
(a) Journalize the January transactions.
(b) Journalize the adjustments pertaining to employee compensation at January 31.