Question

Midwest Shipping pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January. Salaries Federal and state income taxes withheld Federal unemploynent tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate $800,000 160,000 0.80 3.00% 7.654 Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the employee salary expense and withholdings. Note: Enter debits before credits Date General Journal Debit Credit Jan 31 Record entry Clear entry View general Journal

Answer 1

Journal entries:

Account title	debit	credit
Salary expenses Federal and state income tax payable FICA taxes payable ($800000 x 7.65%) Salary payable	$800000 . . .	. $160000 $61200 $578800
Payroll tax expenses    FICA taxes payable ($800000 x 7.65%) State unemployment taxes payable ($800000 x 3%)    Federal unemployment taxes payable ($800000 x 0.80%)	$91600 . . .	. $61200 $24000 $6400