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. $440,000 88,000 0.80% 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 Note: Enter debitis before credits General Journal Debit Credit January 31 Record entry Clear entry View general journal

Answer 1

Credit Date Jan. 1 Debit 440,000 Account title Salaries expense Employee Income tax payable FICA tax payable (440,000x7.65%) Salaries payable 88,000 33,660 318,340 Date Credit Debit 57,772 Jan. 1 Account title Employee payroll tax expense State unemployment payable (440,000x5.4%) Federal unemployment payable (440,000x0.08%) FICA tax payable (440,000x7.65%) 23,760 352 33,660