PAYROLL ACCOUNTING Blitzen Marketing Research paid its weekly and monthly payroll on January 31.

The following information is available about the payroll:

Item Amount Expense Classification Monthly salaries $25,400 Administrative expense Hourly wages 79,600 Operating expense FICA:

Social Security (both employee &

employer)

6.20%

Medicare (both employee & employer) 1.45% Administrative expense Withholding for federal income tax $21,240 Withholding for state income tax 2,680 Federal unemployment tax 1,200 Administrative expense State unemployment tax 600 Administrative expense Blitzen will pay both the employer’s taxes and the taxes withheld on April 15.

Required:

Prepare the journal entry to record the payroll payment and the incurrence of the associated expenses and liabilities.

Exercise