Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll:

Item	Amount
Monthly salaries	$237,480
Hourly wages	585,000
FICA:
Social Security (both employee and employer)	6.20%
Medicare (both employee and employer)	1.45%
Withholding for federal income taxes	$108,500
Federal unemployment taxes	1,200
State unemployment taxes	4,000

Blitzen will pay both the employer's taxes and the taxes withheld on April 15.

Required:

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1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities. If an amount box does not require an entry, leave it blank. When required, round your answers to two decimal places.

Jan. 31	CashIncome Taxes ExpenseMedicare Taxes Expense (Employer)Salaries ExpenseSocial Security Taxes Expense (Employee)Salaries Expense	Salaries Expense	Salaries Expense
	CashInterest ExpenseMedicare Taxes Expense (Employer)Social Security Taxes Expense (Employee)Wages ExpenseWages Expense	Wages Expense	Wages Expense
	CashFederal Unemployment Taxes PayableMedicare Taxes Expense (Employer)Social Security Taxes Payable (Employer)Wage ExpenseCash	Cash	Cash
	Federal Unemployment Taxes PayableMedicare Taxes Payable (Employer)Social Security Taxes Payable (Employee)Social Security Taxes Payable (Employer)Wage PayableSocial Security Taxes Payable (Employee)	Social Security Taxes Payable (Employee)	Social Security Taxes Payable (Employee)
	Medicare Taxes Expense (Employer)Medicare Taxes Payable (Employee)Salaries ExpenseState Unemployment Taxes PayableWage PayableMedicare Taxes Payable (Employee)	Medicare Taxes Payable (Employee)	Medicare Taxes Payable (Employee)
	Federal Income Taxes Withholding PayableFederal Unemployment Taxes ExpenseMedicare Taxes Payable (Employer)Social Security Taxes Payable (Employer)Wage PayableFederal Income Taxes Withholding Payable	Federal Income Taxes Withholding Payable	Federal Income Taxes Withholding Payable
	(Record salaries, wages, and liabilities)
Jan. 31	Federal Unemployment Taxes PayableMedicare Taxes Payable (Employer)Salaries ExpenseSocial Security Taxes Expense (Employer)Social Security Taxes Payable (Employer)Social Security Taxes Expense (Employer)	Social Security Taxes Expense (Employer)	Social Security Taxes Expense (Employer)
	Interest ExpenseMedicare Taxes Expense (Employer)Medicare Taxes Payable (Employer)Social Security Taxes Expense (Employee)Wages ExpenseMedicare Taxes Expense (Employer)	Medicare Taxes Expense (Employer)	Medicare Taxes Expense (Employer)
	Federal Unemployment Taxes ExpenseFederal Unemployment Taxes PayableMedicare Taxes Payable (Employer)Salaries ExpenseSocial Security Taxes Expense (Employee)Federal Unemployment Taxes Expense	Federal Unemployment Taxes Expense	Federal Unemployment Taxes Expense
	Salaries ExpenseSocial Security Taxes Expense (Employee)Social Security Taxes Payable (Employer)State Unemployment Taxes ExpenseState Unemployment Taxes PayableState Unemployment Taxes Expense	State Unemployment Taxes Expense	State Unemployment Taxes Expense
	Medicare Taxes Expense (Employer)Social Security Taxes Expense (Employer)Social Security Taxes Payable (Employee)Social Security Taxes Payable (Employer)Wages PayableSocial Security Taxes Payable (Employer)	Social Security Taxes Payable (Employer)	Social Security Taxes Payable (Employer)
	Medicare Taxes Expense (Employee)Medicare Taxes Expense (Employer)Medicare Taxes Payable (Employer)Social Security Taxes Payable (Employee)Wages PayableMedicare Taxes Payable (Employer)	Medicare Taxes Payable (Employer)	Medicare Taxes Payable (Employer)
	Federal Unemployment Taxes ExpenseFederal Unemployment Taxes PayableMedicare Taxes Payable (Employee)Social Security Taxes Payable (Employee)Wages PayableFederal Unemployment Taxes Payable	Federal Unemployment Taxes Payable	Federal Unemployment Taxes Payable
	Federal Unemployment Taxes ExpenseSalaries PayableSocial Security Taxes Payable (Employee)State Unemployment Taxes ExpenseState Unemployment Taxes PayableState Unemployment Taxes Payable	State Unemployment Taxes Payable	State Unemployment Taxes Payable
	(Record employer payroll taxes)

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1. Payroll taxes are withheld from employee wages and salaries, and then paid to the taxing authority.

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2. What is the employees' gross pay? $fill in the blank 7c54bf01ffb5fa0_1

What amount does Blitzen pay in excess of gross pay as a result of taxes? (Note: Provide both an absolute dollar amount and as a percentage of gross pay, rounding to two decimal places.) $fill in the blank 7c54bf01ffb5fa0_2

This is fill in the blank 7c54bf01ffb5fa0_3 % of gross pay.

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2. Gross pay is the amount of wages and salaries prior to withholdings. In addition to withholdings, the employer pays some payroll taxes.

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3. How much is the employees' net pay as a percentage of total payroll related expenses? Round your answers to two decimal places. fill in the blank 8d80dd00505cf90_1 %

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3. This is an employee's take-home pay as a percentage of wages or salaries earned prior to withholdings.

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4. Conceptual Connection: If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen? Do not round intermediate calculations and round your final answer to two decimal places. $fill in the blank 94087e09eff4f94_1