The summary of the payroll for the monthly pay period ending July 15 indicated the following:
Sales salaries $125,000
Federal income tax withheld 32,300
Office salaries 35,000
Medical insurance withheld 7,370
Social security tax withheld 10,200
Medicare tax withheld 2,550
Required:
Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $25,000 of salaries are subject to unemployment taxes. Refer to the Chart of Accounts for exact wording of account titles.