Frado company provides you with following information related to payroll transac

Question

Frado company provides you with following information related to payroll transactions for the current month. The number below are for the all of the employees combined (there are 10 employees). Prepare journal entries to record the transactions for the current month. a. Record the May Paryroll using the Payroll register information given above. Remember to record social Security and Medicare withholdings b. Recorded the employer's Payroll taxes resulting from the May Payroll. The company has a state unemployment tax rate to 5.4 % of the first $7,000 Paid each employee and a federal unemployment tax rate of 0.8% of the first $7,000 Paid each employee.

Explanation / Answer

Frado Company part a May Payroll Rntry Account Title Dr $ Cr $ Wages Expenses                   60,000 Federal Income Tax Payable                     8,200 State Income Tax Payable                     2,100 Medical Insurance Payable                        800 FICA Tax Payable(@6.2%)                     3,720 Medicare Tax Payable(@1.45%)                        870 Wages Payable                  44,310 part b Payroll Tax Entry FICA Tax Payable(@6.2%)                     3,720 Medicare Tax Payable(@1.45%)                        870 SUTA Payable (@5.4%)                     3,240 FUTA Payable (0.8%)                        480 Payroll Tax Expenses                     8,310

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