Exercise 13-27 Payroll-related liabilities (Appendix] 10 Lee Financial Services pays employees monthly. Payroll information is listed below for January 2018, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base. points Salaries Federal income taxes to be withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social security tax rate Medicare tax rate $620,000 124,000 0.60% 5.40% 6.20% 1.45% Required: Calculate the income and payroll taxes for the January 2018 pay period. Prepare the appropriate journal entries to record salaries and wages expense (not paid) and payroll tax expense for the January 2018 pay period. Payroll Tax General Journal Calculate the income and payroll taxes for the January 2018 pay period. Tax Amount paid by employer Federal income taxes to be withheld Amount withheld from employees' gross pay 100,000 X 31,000 X 7,250 X Social Security (6.2%) Medicare (1.45%) tax rate Federal unemployment tax State unemployment tax Total 31,000 X 7,250 X 3,000 X 27,000 X 68,250 138,250 $ ( Payroll Tax General Journal > Payroll Tax General Journal Prepare the appropriate journal entries to record salaries and wages expense (not paid) and payroll tax expense for January 2018 pay period. (If no entry is required for a transaction/event, select "No journal entry required" in the f account field.) N Credit No 1 Event 1 Debit 500,000 / General Journal Salaries and wages expense Withholding taxes payable Social security taxes payable Medicare taxes payable Salaries and wages payable 100,000 X 31,000 7,250 361,750 X | 2 / 2 68,250 X Payroll tax expense Social security taxes payable Medicare taxes payable Federal unemployment tax payable State unemployment tax payable 31,000 X 7,250 3,000 X 27,000 X