Lee Financial Services pays employees monthly. Payroll information is listed below for January 2013, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.

Salaries	$	490,000
Federal income taxes to be withheld		98,000
Federal unemployment tax rate		0.60	%
State unemployment tax rate (after FUTA deduction)		5.40	%
Social security tax rate		6.20	%
Medicare tax rate		1.45	%

Required:

Complete the following table to calculate the taxes withheld from the employee and the employer.

Tax	Amount withheld from employees' gross pay	Amount paid by employer
Federal income taxes to be withheld
Social Security (6.2%)
Medicare (1.45%) tax rate
Federal unemployment tax
State unemployment tax
Total	$	$

Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2013 pay period. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)

1. Record salaries and wage expense for January 2013 pay period.

2. Record payroll expense for January 2013 pay period.