Juan's Mexican Restaurant incurred salaries expense of

$63,000

for

2024.

The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries,

$16,000

is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company,

$2,000),

life insurance (cost to the company,

$400),

and retirement benefits (cost to the company,

8%

of salaries expense).

LOADING...

(Click the icon to view payroll tax rate information.)Read the requirements

LOADING...

.

Requirement 1. Journalize

Juan's

expenses for employee benefits and for payroll taxes. Explanations are not required.Begin with the entry to accrue

Juan's

employer payroll taxes. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.)

Date			Accounts	Debit	Credit
			Payroll Tax Expense	5,779.50
			FICA-OASDI Taxes Payable		3,906.00
			FICA-Medicare Taxes Payable		913.50
			Federal Unemployment Taxes Payable		96.00
			State Unemployment Taxes Payable		864.00

Now record the accrual of

Juan's

employee benefit expenses.

Date			Accounts	Debit	Credit
			Employee Benefits Expense	7,440.00
			Employee Health Insurance Payable		2,000.00
			Employee Life Insurance Payable		400.00
			Employee Retirement Benefits Payable		5,040.00

Requirement 2. What was

Juan's

total expense for

2024

related to payroll?

Select the labels associated with total payroll expense, and then enter in the corresponding amounts. (Round all amounts to the nearest cent. If a box is not used in the table leave the box empty; do not select a label or enter a zero.)

Total payroll expense