3.

Deacon Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May.

Office Salaries	Sales Salaries	Social Security Taxes	Medicare Taxes	Federal Income Taxes
$38,000	$26,000	$3,968	$928	$5,600

a. Recorded the May payroll using the payroll register information given above. b. Recorded the employers payroll taxes resulting from the May payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42,000 of the current months salaries are subject to unemployment taxes. The federal rate is 0.6%. c. Issued a check to Reliant Bank in payment of the May FICA and employee taxes. d. Issued a check to the state for the payment of the SUTA taxes for the month of May. e. Issued a check to Reliant Bank in payment of the employers quarterly FUTA taxes for the first quarter in the amount of $1,020.