Franny's Fabrics Corporation started operations on January 1, 2020. It had the following payroll transaction during January: Jan. 15 Paid an employee S. Smythe net salary for Jan. 1-15. Gross salary for the period is $1,600. Deductions from gross pay are as follows: Employee income taxes 15% Government pension 4% Company pension plan 10% Company (Employee) insurance 5% Additional information: The company matches pensions and health insurance.

Required: Open an Excel file and prepare journal entries to record the payroll transactions. Use formulas for necessary calculations. Descriptions and general ledger account number are not necessary. Refer to Chapter 9 for examples and additional information.

To record salaries payable as follows:

Deductions

Gross pay

Income taxes

Gov't Pension

Comp pension

Employee health

Total. deduct.

Net pay

Employee Employer