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Lee Financial Services pays employees montly. Payroll information is listed below for January 2011, the first month of Lee's fiscal year. Assume that none of
Lee Financial Services pays employees montly. Payroll information is listed below for January 2011, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base. Salaries Federal income taxes to be withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate Required: Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2011 pay period. The accrual of a contingent liability and the related loss should be recorded when the a. Loss resulting from a future event may be material in relation to income b. Future event that gives rise to the liability is unusual in nature and nonrecurring c. Amount of the loss resulting from the event is reasonable estimated and the occurrence of the loss is probable. d. Event that gives the rise to the liability is unusual and its occurrence is probable
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