cise 17-21 Monthly Payroll Entries Aggie Co. sells agricultural products. Aggie pays its salespeople a salary plus a commission. The salary is the same for each salesperson, $1,000 per month. The commission varies by length of employment and is a percentage of the company's total gross sales. Each salesperson starts with a commission of 1.0%, which is increased an additional 0.5% for each full year of employment with Aggie, to a maximum of 5.0%. The total gross sales for the month of January were $120,000. Aggie has six salespeople as follows: Number of Years Employment Frank... 10 Sally 9 Tina . .. . 8 Barry . . . . . 6 Mark .. 3 Lisa .... 0.75 Assume that the FICA rate is 7.65%, the FUTA rate is 6.2%, and the state unemployment rate is 5.4%. (Assume that the federal government allows the maximum credit for state unemployment tax paid.) The federal in- come tax withholding rate is 30%. Compute the January salaries and commissions expense, and make any necessary entries to record the payroll transactions including cash payment of all the taxes payable.17-21 Name: Enter the appropriate amounts/formulas in the blue-shaded cells, or select from the drop-down list. The word "Wrong" will appear to the left of incorrect entries. Payroll computations: Computation of Commissions Salesperson Frank Sally Tina Barry Mark Lisa Years Employed 10 9 8 6 3 0.75 Commission % Gross Sales Commission Salary $120,000 $1,000 $120,000 $1,000 $120,000 $1,000 $120,000 $1,000 $120,000 $1,000 $120,000 $1,000 Total salaries and commissions expense FICA taxes payable: Payroll FICA rate FICA taxes payable Employees income taxes payable: Payroll Income tax rate Employees income taxes payable FUTA taxes payable: Federal rate State credit Net FUTA tax rate 7.65% 30% 6.2% 5.4% Payroll FUTA rate FUTA taxes payable State unemployment taxes payable: Payroll State rate Total state unemployment taxes Journal entries: 5.4% Debit To record payroll. To record employer payroll taxes. To record payment of payroll taxes owed. Credit Gross Pay