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. Salaries expense Federal and state income tax withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate No 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 fleld.) 1 Date January 31 $410,000 82,000 0.80% 5.40% 7.65% Salaries Expense Employee Income Tax Payable FICA Tax Payable Salaries Payable Answer is complete but not entirely correct. General Journal Debit 410,000 Credit 82,000 31,365 296,635

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Salaries expense
Federal and state income tax withheld
Federal unemployment tax rate
State unemployment tax rate (after FUTA deduction)
Social Security (FICA) tax rate
No
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 fleld.)
1
2
Date
January 31
January 31
Salaries Expense
Employee Income Tax Payable
FICA Tax Payable
Salaries Payable
$410,000
82,000
Answer is complete but not entirely correct.
General Journal
Payroll Tax Expense
FICA Tax Payable
0.80%
5.40%
7.65%
Unemployment Tax Payable
Unemployment Tax Payable
>> >*
Debit
410,000✔
56,785
Credit
82,000
31,385
296,635
31,365
3,280 x
22,140
Transcribed Image Text: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. Salaries expense Federal and state income tax withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate No 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 fleld.) 1 2 Date January 31 January 31 Salaries Expense Employee Income Tax Payable FICA Tax Payable Salaries Payable $410,000 82,000 Answer is complete but not entirely correct. General Journal Payroll Tax Expense FICA Tax Payable 0.80% 5.40% 7.65% Unemployment Tax Payable Unemployment Tax Payable >> >* Debit 410,000✔ 56,785 Credit 82,000 31,385 296,635 31,365 3,280 x 22,140
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