Question

What would be the debits & credits in this situation?

No. 12 Since Glo-Brite Paint Company withholds the city of Philadelphia income tax, you must deposit the taxes with the Department of Revenue. The deposit rule that affects Glo-Brite Paint Company states that if the withheld taxes are between $350 and $16,000 per month, the company must deposit the tax monthly by the 1Sth of the following month. The withheld taxes for the October payrolls were $1,215.29. o Prepare the journal entry to record the deposit of the taxes, and post to the appropriate ledger accounts. ② Complete the Philadelphia Employer's Return of Tax Withheld cou- pon (Monthly Wage Tax), which appears on page 7-51.

Answer 1

1. Journal entry for deposit of taxes

Federal Income Taxes Withholding Payable A/c Dr $1,215.29

To Bank Account $1,215.29

(Being withheld taxes for October payrolls deposited)

Note : At the time of recording payroll expenses, Federal Income Taxes Withholding Payable A/c is been credited and when the same is been paid, it is debited as can be seen in above entry.