Question

Airline Temporary Services (ATS) pays employees monthly. Payroll information is listed below for January, the first month of ATS's fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7.000 in January $460,699 92,000 0.88% Salaries expense Federal and state income tax withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social security (FICA) tax rate 5.40% 7.65% Required: Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the employee salary, withholdings, and salaries payable.

Answer 1

Date	Account title and explanation	Debit	Credit
	Salaries expense	460,000
	Income tax payable		92,000
	FICA tax payable (460,000x7.65%)		35,190
	Salaries payable		332,810
Date	Account title and explanation	Debit	Credit
	Payroll tax expense	63,710
	State unemployment tax payable (460,000x5.4%)		24,840
	Federal unemployment tax payable (460,000x0.80%)		3,680
	FICA tax payable		35,190