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 employees). Prepare journal entries to record the transactions for the current month.
Gross Salaries $60,000
Federal Income Taxes withheld $8,200
State Income Taxes withheld $2,100
Medical Insurance withheld $800
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 $7,000 paid each employee and a federal unemployment tax rate of 0.8% of the first $7,000 paid each employee. (note that the federal and state unemployment limits have not been reached yet).