Reference no: EM132678168

Problem 1: Assume that the town of Boonsville maintains a Payroll Custodial Fund for its employees' income tax withholdings and its employees' pension contributions. The following are selected transactions incurred during calendar year 2019 that are related to the fund. Prepare the journal entries necessary to record these transactions on the books of the Boonsville Payroll Custodial Fund. Also, prepare statement of change in fiduciary net position for the fiscal year ending December 31, 2019, and a statement of fiduciary net position as of December 31, 2019.

1. The town recorded its monthly payroll; salaries totaled $350,000. The withholdings were as follows: $70,000 for employees' income taxes and $15,000 for employees' pension contributions. The General Fund paid the appropriate amount to the Payroll Custodial Fund.
2. The town recorded its monthly payroll; salaries totaled $375,000. The withholdings were as follows: $75,000 for employees' income taxes and $18,000 for employees' pension contributions. The General Fund paid the appropriate amount to the Payroll Custodial Fund. 
3. The town recorded its monthly payroll; salaries totaled $350,000. The withholdings were as follows: $70,000 for employees' income taxes and $15,000 for employees' pension contributions. The General Fund paid the appropriate amounts to the Payroll Custodial Fund. 
4. The Payroll Custodial Fund made a payment of $215,000 to the U.S. government and $48,000 to the Pension Trust Fund. 
5. The town recorded its monthly payroll; salaries totaled $375,000. The withholdings were as follows: $75,000 for employees' income taxes and $18,000 for employees' pension contributions. The General Fund paid the appropriate amounts to the Payroll Custodial Fund. A liability should be recorded in the Payroll Custodial Fund because it is compelled to disburse the withholdings.