Frado Company provides you with following information related to payroll

transactions for the current month. The numbers below are for the all of the employees

combined $($there are $10$ employees$).$ Prepare journal entries to record the transactions for

the current month.

Gross Salaries $$80,000$

Federal Income Taxes withheld $$9,200$

State Income Taxes withheld $$3,100$

Medical Insurance $($not Medicare$)$ withheld $$800$

a$.$ Record the May payroll using the payroll register information given above. Remember

to record Social Security and Medicare withholdings $($note that the Social Security limit

has not been reached yet$).$

b$.$ Recorded the employer's payroll taxes resulting from the May payroll. The company

has a state unemployment tax rate to $5\mathrm{.}4\%$ of the first $$7,000$ paid each employee and a

federal unemployment tax rate of $0\mathrm{.}8\%$ of the first $$7,000$ paid each employee. $($note that

the federal and state unemployment limits have not been reached yet$).$

Accounts Debit Credit

Part a

Part bFrado Company provides you with following information related to payroll

transactions for the current month. The numbers below are for the all of the employees combined $($there are $10$ employees$).$ Prepare journal entries to record the transactions for the current month.

$\backslash$table$[[$Gross Salaries,$$80,000],[$Federal Income Taxes withheld,$$9,200],[$State Income Taxes withheld,$$3,100],[$Medical Insurance $($not Medicare$)$ withheld,$$800]]$

a$.$ Record the May payroll using the payroll register information given above. Remember to record Social Security and Medicare withholdings $($note that the Social Security limit has not been reached yet$).$

b$.$ Recorded the employer's payroll taxes resulting from the May payroll. The company has a state unemployment tax rate to $5\mathrm{.}4\%$ of the first $$7,000$ paid each employee and a federal unemployment tax rate of $0\mathrm{.}8\%$ of the first $$7,000$ paid each employee. $($note that the federal and state unemployment limits have not been reached yet$).$