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 unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate $900,000 120,000 0.80% 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/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the employer payroll taxes. Note: Enter debits before credits.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 unemployment tax rate
State unemployment tax rate (after FUTA deduction)
Social Security (FICA) tax rate
$900,000
120,000
0.80%
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/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
2
Record the employer payroll taxes.
Note: Enter debits before credits.
Transcribed Image Text: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 unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate $900,000 120,000 0.80% 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/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the employer payroll taxes. Note: Enter debits before credits.
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