2.Lee Financial Services pays employees monthly. Payroll information is listed below for January 2021, the first month of Lees fiscal year. Assume that none of the employees exceeded any relevant base of pay, such that all benefit percentages apply to the entire $500,000 payroll.

Salaries $500,000

Federal income taxes to be withheld $100,000

Federal unemployment tax rate 0.60%

State unemployment tax rate (after SUTA deduction) 5.40%

Social Security tax rate 6.2%

Medicare tax rate 1.45%

Required:

Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2021pay period.