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$800,000Federal and state income taxes withheld160,000Federal unemployment tax rate0.80%State unemployment tax rate (after FUTA deduction)3.00%Social Security (FICA) tax rate7.65%Record salaries expense and payroll tax expense for the January pay period.
What will be an ideal response?
| January 31 | Debit | Credit |
| Salaries Expense | 800,000 | ? |
| Income Tax Payable | ? | 160,000 |
| FICA Tax Payable ($800,000 × .0765) | ? | 61,200 |
| Salaries Payable (to balance) | ? | 578,800 |
| January 31 | ? | ? |
| Payroll Tax Expense (total) | 91,600 | ? |
| FICA Tax Payable ($800,000 × .0765) | ? | 61,200 |
| Unemployment Tax Payable ($800,000 × .038) | ? | 30,400 |
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