On January 8, the end of the first weekly pay period of the year, Royal Company's payroll register showed that its employees earned $27,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,160 of federal income taxes, $1,410 of medical insurance deductions, and $800 of union dues. No employee earned more than $7,000 in this first period.

Required:
1.1	Calculate FICA Social Security taxes payable and FICA Medicare taxes payable by the employees of Royal Company. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

FICASocial sec. taxes payable	$
FICAMedicare taxes payable	$

1.2	Prepare the journal entry to record Royal Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 8	(Click to select)FICA-Medicare taxes payableSalaries payableFICA-Social sec. taxes payableEmployee union dues payableEmployee fed. inc. taxes payableOffice salaries expenseEmployee medical insurance payableSales salaries expense
	(Click to select)Employee union dues payableSales salaries expenseEmployee fed. inc. taxes payableFICA-Medicare taxes payableSalaries payableFICA-Social sec. taxes payableEmployee medical insurance payableOffice salaries expense
	(Click to select)Salaries payableEmployee medical insurance payableFICA-Social sec. taxes payableSales salaries expenseEmployee fed. inc. taxes payableOffice salaries expenseEmployee union dues payableFICA-Medicare taxes payable
	(Click to select)Employee medical insurance payableEmployee fed. inc. taxes payableOffice salaries expenseEmployee union dues payableFICA-Social sec. taxes payableSalaries payableFICA-Medicare taxes payableSales salaries expense
	(Click to select)Employee union dues payableFICA-Social sec. taxes payableSalaries payableOffice salaries expenseEmployee fed. inc. taxes payableEmployee medical insurance payableFICA-Medicare taxes payableSales salaries expense
	(Click to select)Employee union dues payableFICA-Medicare taxes payableOffice salaries expenseSales salaries expenseFICA-Social sec. taxes payableEmployee fed. inc. taxes payableEmployee medical insurance payableSalaries payable
	(Click to select)Office salaries expenseSales salaries expenseEmployee medical insurance payableSalaries payableFICA-Social sec. taxes payableEmployee fed. inc. taxes payableFICA-Medicare taxes payableEmployee union dues payable
	(Click to select)Salaries payableFICA-Social sec. taxes payableSales salaries expenseFICA-Medicare taxes payableEmployee medical insurance payableEmployee fed. inc. taxes payableEmployee union dues payableOffice salaries expense

2.

Prepare the journal entry to record Royal's (employer) payroll taxes resulting from the January 8 payroll. Royal's merit rating reduces its state unemployment tax rate to 2% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 8	(Click to select)FICA-Social sec. taxes payableSalaries payableFederal unemployment taxes payableSales salaries expensePayroll taxes expenseOffice salaries expenseFICA-Medicare taxes payableState unemployment taxes payable
	(Click to select)Sales salaries expenseFICA-Social sec. taxes payablePayroll taxes expenseSalaries payableOffice salaries expenseFederal unemployment taxes payableFICA-Medicare taxes payableState unemployment taxes payable
	(Click to select)FICA-Social sec. taxes payableState unemployment taxes payablePayroll taxes expenseFederal unemployment taxes payableSalaries payableFICA-Medicare taxes payableSales salaries expenseOffice salaries expense
	(Click to select)Sales salaries expenseOffice salaries expensePayroll taxes expenseSalaries payableFederal unemployment taxes payableFICA-Medicare taxes payableFICA-Social sec. taxes payableState unemployment taxes payable
	(Click to select)Sales salaries expenseState unemployment taxes payableFederal unemployment taxes payableSalaries payableFICA-Social sec. taxes payablePayroll taxes expenseFICA-Medicare taxes payableOffice salaries expense