Question

4. 6 points) Frado Company provides you with following information related to payroll transactions for the current month. The numbers below are for the all of the employees combined (there are 10 employers Prepane journal entries to record the transactions for the current month. Gro Salaries Federal Income Taxes withheld State Income Taxes withheld Medical Insurance withheld S60.000 S. 100 $2,100 SRDO Record the May payroll using the payroll register information given above. Remember to record Social Security and Medicare withholdings (note that the Social Security limit has not been reached yet. b. Recorded the employer's payroll taxes resulting from the May payroll The company has a state unemployment tax rate to 5.4% of the first 57.000 paid each employee and a federal unemployment tax rate of % of the first $7.000 paid each employee. (note that the federal and state unemployment limits have not been reached yet. Accounts Debit

Answer 1

Description	Post Ref	Debit	Credit	Calculation
Salary Exp A/c Dr	1	60000
To Federal Income taxes payable Cr			8200
To State Income taxes payable Cr			2100
To Medical Insurance payable Cr			800
To Social Security payable Cr			3720	Calculated at the rate of 6.2% on 60,000
To Medicare payable Cr			870	Calculated at the rate of 1.45% on 60,000
To Salary payable A/c Cr			44310	Balancing number
(Being entry passed Salary booking for the current month)
Salary Exp A/c Dr	2	3720
To State Unemployement taxes payable Cr			3240	Calculated at the rate of 5.4% on 60,000
To Federal Unemployement taxes payable Cr			480	Calculated at the rate of 0.8% on 60,000
(Being entry passed for accrual of State and Federal unemployment taxes payabale at the rate of 5.4% and 0.8%)