Instructions: Prepare the needed journal entries for Cerviq Company. 1. Cerviq Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $22,000 and sales taxes $1,100. Total cash received was $23,100. Cash Sales Revenue Sales Taxes Payable Debit 23,100 Credit 22,000 1,100 2. The company's employees earned wages of $64,000. Withholdings from those wages for taxes were: Social Security and Medicare - $4,896 for FICA; Federal Income Tax Withholding - $7,500 for federal income tax; State Income Tax Withholding - $3,100 for state income tax. Cerviq Company (as with all companies) is required to match the Soicial Security and Medicare taxes. Record the two needed entries assuming all wages are paid with cash. Any taxes are "owed" at month end. A. Show the entry to record the wages, take out the taxes (and owed to the government), and pay the employees with cash. Debit Credit B. Show the entry to record the taxes that Cervig Company has to match that are then "owed" to the government. Debit CHECK FIGURE: Cash - $48,504 Credit

Instructions: Prepare the needed journal entries for Cerviq Company. 1. Cerviq Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $22,000 and sales taxes $1,100. Total cash received was $23,100. Cash Sales Revenue Sales Taxes Payable Debit 23,100 Credit 22,000 1,100 2. The company's employees earned wages of $64,000. Withholdings from those wages for taxes were: Social Security and Medicare - $4,896 for FICA; Federal Income Tax Withholding - $7,500 for federal income tax; State Income Tax Withholding - $3,100 for state income tax. Cerviq Company (as with all companies) is required to match the Soicial Security and Medicare taxes. Record the two needed entries assuming all wages are paid with cash. Any taxes are "owed" at month end. A. Show the entry to record the wages, take out the taxes (and owed to the government), and pay the employees with cash. Debit Credit B. Show the entry to record the taxes that Cervig Company has to match that are then "owed" to the government. Debit CHECK FIGURE: Cash - $48,504 Credit

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 5AP

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