Current Liabilities

The employees of Pinehurst Company earned wages of $80,000 during the month of June. The following were withholdings related to these salaries: $5,000 for Social Security (FICA), $3,000 for state income tax, and $7,700 for federal income tax. Additional employer-paid FICA taxes are $5,450.

a. Prepare the journal entry to record the payment of these salaries assuming they are paid on June 30. If required, round your answers to the nearest dollar. For compound entries, if an amount box does not require an entry, leave it blank.

June 30	Salaries Expense	80000	0
	Cash	0	_____
	Federal Tax Withholdings Payable	0	_____
	FICA Taxes Payab;e	0	5000
	State Tax Withholdings Payable	0	_____

b. Prepare the journal entry to record Pinehurst Company's additional payroll tax expense for June.

June 30th	_____	_____	0
	_____	0	_____