Part b. Payroll tax expense.

Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Adninistrative salaries Salen salaries Office salaries $80,000 67,000 36,000 Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent on all salaries. Duke reached the $110,000 amount in September. His salary in December amounted to $15,000 and is included in the $80,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December Other amounts withheld from salaries in December were as follows: Federal incone tax State income tax $20,000 6,200 2,600 Employee savings plan Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry works heet No Date General Journal Debit Credit Administrative salaries expense 12/31 80,000 Sales salaries expense 67,000 Office salaries expense 36,000 Employee federal income tax payable 20,000 Employee state income tax payable FICA tax-SS payable FICA tax-Medicare payable 6,200 10,080 2,745 Employee savings plan 2,600 Cash 141,375 b. Prepare the journal entry to record the payroll tax expense for Electronics Service Co. for December Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View journal entry worksheet View transaction list No Date General Journal Debit Credit 1 12/31 Payroll tax expense FICA tax-SS payable 10,080 FICA tax- Medicare payable 2,745