Question

No method was provided. I copied the question as provided.

The summary of the payroll for the monthly pay period ending July 15 indicated the following:

Salaries	$180,000
Federal income tax withheld	32,300
Medical insurance withheld	7,370
Social security tax withheld	10,800
Medicare tax withheld	2,700

Illustrate the effects on the accounts and the financial statements of (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 4.2%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

Answer 1

Part A

Account titles and explanation	debit	credit
Salaries expense	180000
Social Security tax payable		10800
Medicare tax payable		2700
Employees federal income tax payable		32300
Medical insurance payable		7370
Salaries payable (balancing figure)		126930

Part B

Account titles and explanation	debit	credit
Payroll taxes expense	14970
Social Security tax payable		10800
Medicare tax payable		2700
State unemployment tax payable (30000*4.2%)		1230
Federal unemployment tax payable (30000*0.8%)		240