No method was provided. I copied the question as provided. The summary of the pa

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.

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

Explanation / Answer

Part A

Part B

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

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