For the week ended January 27, the Guerin Company had a total payroll of $90,000. The company withheld three items from employees' paychecks: (1) Social Security (FICA) tax of 7.3% of the payroll; (2) income taxes, which average 24% of the payroll; and (3) employees' savings that are deposited in their Credit Union, which are $4,900. Guerin paid all three items together with the wages on January 30. Requirements 1. Use the balance sheet equation to analyze the transactions on January 27 and January 30. 2. Prepare journal entries for the recording of the items in requirement 1. 3. In addition to the payroll, Guerin pays (1) payroll taxes of 11% of the payroll, (2) health insurance premiums of $6,600, and (3) contributions to the employees' pension fund of $7,700. Prepare journal entries for the recognition and payment of these additional expenses. Requirement 1. Use the balance sheet equation to analyze the transactions on January 27, then January 30. (Abbreviation used: RE = Retained Earnings. Use parentheses or a minus sign to show a decrease in an accounting equation component and leave any unused cells blank.) Assets = Liabilities + Stockholders' Equity Accrued Withheld Withheld RE: Wages Income Taxes Social Payable to Cash = Payable Payable Security Taxes Credit Union Compensation Expense Jan 27 Recognize liabilities Jan 30 Pay employees Pay government Pay Credit Union = || || Requirement 2. Prepare journal entries for the recording of the items in requirement 1. (Record debits first, then credits. Explanations are not required.) Prepare the January 27 entry, recognizing the liabilities. Date Jan 27 Accounts Debit Credit Now prepare the first entry for January 30, paying the employees. Date Jan 30 Accounts Debit Credit Next prepare the entry on January 30 for a payment to the government. Date Jan 30 Accounts Debit Credit Finally prepare the last entry on January 30, payment to the Credit Union. Date Jan 30 Accounts Debit Credit Requirement 3. In addition to the payroll, Guerin pays (1) payroll taxes of 11% of the payroll, (2) health insurance premiums of $6,600, and (3) contributions to the employees' pension fund of $7,700. Prepare journal entries for the recognition and payment of these additional expenses. (Record debits first, then credits. Explanations are not required.) Prepare the journal entry for the recognition of the additional expenses. Date Jan 27 Accounts Debit Credit Prepare the journal entry for the payment of the additional expenses. Date Jan 30 Accounts Debit Credit