Question

Midwest Shipping pays employees at the end of each month. Payroll Information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries Federal and state income taxes withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate $800.000 179.000 0.885 5.4.06 7.65% Record salarles expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction lat Journal entry worksheet Record the employee salary expense and withholdings. Note: Enter debits before credits Date General Journal Debit Credit Jan 31 Record entry Clear entry View general Journal

2nd Journal ENtry :

• Record the employer payroll taxes.

Answer 1

1
Jan 31	Salaries expense	800000
	FICA tax payable		61200	=800000*7.65%
	Income tax payable		170000
	Salaries payable		568800
2
Jan 31	Payroll tax expense	110800
	FICA tax payable		61200
	Unemployment tax payable		49600	=800000*(5.4%+0.8%)