Attached are instructions and opening balances to begin the project. The project starts out with Sept. 30th opening balances. Use the instructions to fill out the final three 4th quarter monthly payrolls. In addition, you will prepare the payroll journal entries, prepare checks to pay employees and tax liabilities as well as prepare year-end payroll tax forms.
A sample T-Account sheet is provided to help with the trial balances each month. Remember a trial balance is simply a listing of the T-Account final balances at a given point in time (ie. end of month).
Opening Balances Ol' Fashion Industries Trial Balance As of Sept. 30th, 201X Acct # 100Cash150,000.00 110A/R45,000.00 120Inventory200,000.00 130Equipment150,000.00 220F/W payable2,087.65 221St/W payable657.90 222SS payable2,504.80 223Medicare payable585.80 224FUTA payable36.00 225SUTA payable210.00 230401K payable1,700.00 231Medical Prem.3,900.00 232FSA1,100.00 300Captial150,000.00 330R/E153,187.85 400Revenue450,000.00 500Wages Expense172,000.00 501Payroll Tax Expense16,020.00 502Medical Insurance Expense19,150.00 503401K expense13,800.00 TOTAL765,970.00765,970.00 Oct payroll Payroll Sums UP TO Sept. 30thOct. 31st Payroll TotalFederalSoc. Sec.MedicareOct. 31TaxableTaxableTaxableTaxableTaxable NameM / SWages to dateWages to dateWages to dateWages to dateGross WagesF/W WagesSS. WagesMed. WagesF/WSt/WSS w/hMed. w/h401KMedicalFSANet WagesFUTA wagesSUTA wagesFUTASUTA LarryM** KeaganS MarthaS NancyM Totals--------------------- **Note - Must be calculated the long way show work here JOURNAL ENTRIEScheckbook register DebitCreditCk #Payable to:$$ Oct 15th500Department of Treasury**** 501Larry M 502 Oct 31st Nov payroll Payroll Sums UP TO Oct. 31stNov. 30th Payroll TotalFederalSoc. Sec.MedicareOct. 31TaxableTaxableTaxableTaxableTaxable NameM / SWages to dateWages to dateWages to dateWages to dateGross WagesF/W WagesSS. WagesMed. WagesF/WSt/WSS w/hMed. w/h401KMedicalFSANet WagesFUTA wagesSUTA wagesFUTASUTA LarryM KeaganS MarthaS NancyM Totals-------------------- JOURNAL ENTRIEScheckbook register DebitCreditCk #Payable to:$$ Nov 15th Nov 30th Dec payroll Payroll Sums UP TO Nov. 30thDec. 31st Payroll TotalFederalSoc. Sec.MedicareOct. 31TaxableTaxableTaxableTaxableTaxable NameM / SWages to dateWages to dateWages to dateWages to dateGross WagesF/W WagesSS. WagesMed. WagesF/WSt/WSS w/hMed. w/h401KMedicalFSANet WagesFUTA wagesSUTA wagesFUTASUTA LarryM KeaganS MarthaS NancyM Totals-------------------- Form 941Form 940 JOURNAL ENTRIESDec. and JanW-2 INFO(no need to attach actual form)(no need to attach actual form) checkbook registerLine 2Line 3- DebitCreditLarryBox 1Box 2 Dec. 15thCk #Payable to:$$Box 3Box 4Line 3Line 4 Box 5Box 6 codecodeLine 5aLine 5 Box 12Box 12 Line 6 Box 16Box 17 Dec. 31stLine 5cLine 7 Line 8 KeaganBox 1Box 2Line 6 Box 3Box 4Line 7Line 11 Box 5Box 6 codecodeLine 10 & 11Line 12 Box 12Box 12 Q1 Box 16Box 17Line 14Q2 OctQ3 Q4 MarthaBox 1Box 2Total Box 3Box 4 Box 5Box 6Nov codecode Box 12Box 12 Box 16Box 17 Dec NancyBox 1Box 2 Box 3Box 4 Box 5Box 6 codecodeTotal Box 12Box 12 Box 16Box 17 Oct 31 TB Ol' Fashion Industries Trial Balance As of Oct 31st, 201X Acct # 100Cash 110A/R45,000.00 120Inventory200,000.00 130Equipment150,000.00 220F/W payable 221St/W payable 222SS payable 223Medicare payable 224FUTA payable 225SUTA payable 230401K payable 231Medical Prem. 232FSA 300Captial150,000.00 330R/E153,187.85 400Revenue450,000.00 500Wages Expense 501Payroll Tax Expense 502Medical Insurance Expense 503401K expense TOTAL395,000.00753,187.85 Nov 30 TB Ol' Fashion Industries Trial Balance As of Nov. 30th, 201X Acct # 100Cash 110A/R45,000.00 120Inventory200,000.00 130Equipment150,000.00 220F/W payable 221St/W payable 222SS payable 223Medicare payable 224FUTA payable 225SUTA payable 230401K payable 231Medical Prem. 232FSA 300Captial150,000.00 330R/E153,187.85 400Revenue450,000.00 500Wages Expense 501Payroll Tax Expense 502Medical Insurance Expense 503401K expense TOTAL395,000.00753,187.85 Dec 31 TB Ol' Fashion Industries Trial Balance As of Dec. 31st, 201X Acct # 100Cash 110A/R45,000.00 120Inventory200,000.00 130Equipment150,000.00 220F/W payable 221St/W payable 222SS payable 223Medicare payable 224FUTA payable 225SUTA payable 230401K payable 231Medical Prem. 232FSA 300Captial150,000.00 330R/E153,187.85 400Revenue450,000.00 500Wages Expense 501Payroll Tax Expense 502Medical Insurance Expense 503401K expense TOTAL395,000.00753,187.85 Payroll Project As the accountant for Veneskey & Son’s, you have been hired to prepare the payroll and everything that goes along with it for Ol’Fashion Industries which has 4 employees. Their necessary payroll information is listed below and in the Excel spreadsheet for the current year. The employees are paid monthly (last day of the current month) and were last paid Sept. 30th. Assume this is an Indiana company and use the Indiana withholding rates. SUTA rate = 3.5%. EmployeeGross Wages Marital Status RecentTermination per check Hire date Larry14,200MarriedN/A Keagan4,700 Single N/A Martha3,700Single Aug. 1st Nov. 30th Nancy3,500Married Sept. 1st ***All Medical Premium Insurance and Flexible Spending are part of a cafeteria plan*** Larry – Has $450/ pay deducted for 401K, $500/pay deducted for Medical Premium insurance , and $400 withheld for his Flexible Spending Account (FSA). Step 3 of W4 = $2,500. Spouse does not work. Keagan - Has $300/ pay deducted for 401K, $250/pay deducted for Medical Premium insurance , and $150 withheld for FSA. Step 3 of W4 = $500 Martha- Has $50/ pay deducted for 401K, $200/pay deducted for Medical Premium insurance , and $150 withheld for FSA. Nothing for Step 3 or 4 Nancy- Has $50/ pay deducted for 401K, $350/pay deducted for Medical Premium insurance , and $400 withheld for FSA. Spouse makes the same as her (checked step 2 on W4) **Employer will match 401K contributions up to $500. Employer’s portion of the Medical Premiums is twice what the employee pays.** Instructions: 1. Using the attached Excel Spreadsheet tabs, complete the payroll register for Oct., Nov., and Dec. (There is a separate monthly tab at the bottom of the Excel file). a. You may be creative and use your payroll template sheets instead of the nonformatted sheets in this Spreadsheet for Oct, Nov, and Dec register and journal entries. However, make sure your template sheets, if you use them, contain all the answers found in the original tabs provided. 2. Using the Excel Spreadsheet or template sheet, complete the payroll journal entries for each month. Also include the entries to record payment of taxes and other benefits to the respectable parties as outlined below. ** Note: Do Not include the Employers portion of 401K and Medical Premiums in with the Payroll Tax Expense. These are not taxes, but separate expenses. 3. The taxes and other payroll benefit expenses are paid: a. F/W & FICA – every month (last paid Sept. 15th) next due Oct. 15th (Sept pay) i. See opening trial balance for current payments due b. St/W – every 2 months (last paid Sept. 15th) next due Nov. 15th (Sept and Oct pay) i. For each 2 month item, use the separate Trial balance and your own T-Accts to help keep track of what is due (see below #5 trial balances) c. 401K – every 2 months (last paid Sept. 15th) next due Nov. 15th (Sept and Oct pay) d. Medical Prem. & FSA – every 2 months (last paid Sept. 15th) next due Nov. 15th (Sept and Oct pay) e. FUTA & SUTA – do not pay this year 4. Create a checkbook record of each check written (included in each months Excel tab) a. Start with check 500 for the Oct 15th payment and then continue with checks 501 – 504 for each employee’s check. b. You may combine F/W and FICA for one check to the “Department of Treasury” i. Note: You should also refer to the open trial balance to determine how much is in each account to be paid. Due to the prior accountant not paying the correct amount in Sept., the Sept balances due will be a little different than the Oct. balances calculated. c. The following are the names of each department receiving checks i. St/W = “Ind. Dept. of Treasury” ii. 401K = TIAA Cref iii. Medical Ins. Prem. = “Anthem” iv. FSA = “Star Bank” 5. Complete an updated trial balance for the end of each month ending Dec. 31st (separate Excel taps provided) a. Only update the balances for the entries you make. Thus leave all balance as is that are already filled in for Oct., Nov…etc. b. Use the attached T-Acct sheet to keep balance up-to-date 6. Complete the W-2 for each employee (included in Dec. Excel tab) 7. Complete Form 941 for the 4th Qtr (included in Dec. Excel tab) a. Show all work as formulas in current tab or in a separate tab for longer work explanations 8. Complete Form 940 (included in Dec. Excel tab) a. Show all work as formulas in current tab or in a separate tab for longer work explanations General Ledger T-accounts (General Ledger ) example ASSETS=Liabilities+Owner's Equity+Revenue-Expenses +--+-+-++- #100 - Cash210 - Soc. Sec. Tax Payable300 - Capital / Common Stock400 - Sales Revenue500 -Wages Expense datedr.cr.datedr.cr.datedr.cr.datedr.cr.datedr.cr. NONONONONO 501 - Payroll Tax Expense 211 -Medicare Tax Payabledatedr.cr. datedr.cr.NO NO 502 - Medical Prem Exp datedr.cr. 212 -Fed. Inc. Tax PayableNO datedr.cr. NO 503 - 401K Expense datedr.cr. 213 -State Inc Tax PayableNO datedr.cr. NO 214 -Cty Inc Tax Payable datedr.cr. NO 215 -FUTA Tax Payable datedr.cr. NO 216 -SUTA Tax Payable datedr.cr. NO 220 -Med. Prem. Payable datedr.cr. NO I sent all the information I was given for the assignment. The only thing I didn't send was the rubric, which I will copy and paste now. Oct 2pts - Y-T-D amounts 1 pt each current wage column (all or nothing) 2 pts each employee federal withholding calculation 2 pts each column: state withholding, social security, and medicare (1 pt per error) 2 pts Net wages 2 pts each: Taxable FUTA and SUTA wages (1 pt per error) 1 pt each: FUTA / SUTA tax column Journal 2 pts - Oct 15th payment of liabilities 3 pts - Oct 31st - 1st journal (1 pt per error) 2pts - Oct 31st - 2nd journal (1 pt per error) 1 pt - Oct 31st - 401K expense 1 pt - Oct 31st - Medical prem. expense Checks 1 pt - check 500 to Dept. of Treasury 2 pts - checks 501-504 to employees Nov. 1 pt YTD wages (up to 0.5 per error) 1 pt current federal taxable wages 2 pts current social security taxable wages (1 pt per error) 1 pt current Medicare taxable wages 2 pts each Futa and Suta taxable wages (1 pt per error) 1 pt each Futa and Suta tax Journal 2 pts - 11-15 Form 941 taxes paid (1 pt per error) 3 pts - 11-15 all other taxes pd (1 pt per error) 3 pts - 11-30 first journal entry (1 pt per error) 2 pts - 11-30 second journal entry (1 pt per error) 1 pt each 11-30 401K and medical prem expenses Checks 1 pt - check 505 dept of treasury 3 pts - checks 506-510 (1 pt per error) 2 pts - employee checks 511-514 (1 pt per error) Dec 1 pt YTD wages (up to 0.5 per error) 4 pts all current wages (1 pt per error) 1 pt each - Futa and Suta taxable wages Journal 2 pts