Problem:
Lee Financial Services pays employees monthly. Payroll information is listed below for January 2011, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.
Salaries $ 452,000
Federal income taxes to be withheld 90,400
Federal unemployment tax rate 0.80%
State unemployment tax rate (after FUTA deduction) 5.40%
Social Security (FICA) tax rate 7.65%
Required:
Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2011 pay period. (Round your answers to the nearest dollar amount)
General Journal Debit Credit
To record the salaries and wages expense.
- Salaries and wages
- Withholding taxes payable
- Social security taxes
- Medicare taxes payable
- Salaries and wages payable
To record the payroll tax expense.
- Payroll tax expense
- Social security taxes
- Medicare taxes payable
- Federal unemployment tax payable
- Medicare taxes payable