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Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.

Use the following tax rates and bases: employers FICAOASDI, 6.2% on the first $117,000; employers FICAHI, 1.45% on total earnings; FUTA, 0.6% on the first $7,000; and SUTA, 3.6785% on the first $8,500.

If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.

Olney Company is a small manufacturing firm located in Allentown, Pennsylvania. The company has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours.

Wages are paid every Friday, with one weeks pay being held back by the company. Thus, the first payday for Olney Company is January 14 for the workweek ending January 8 (Saturday).

The total deductions for employees' payroll is shown below.
OASDI $597.68
HI 139.77
FIT 772.76
SIT 295.96
SUTA 6.76
CIT 128.19
Simple deductions 440.00
Group insurance 6.80
Health insurance 16.50
Total deductions 2,404.42

Below is the information provided from the payroll register of Olney Company, Inc.

OLNEY COMPANY, INC. Payroll Register
Time Card No. Name GRP. INS. HEALTH INS. CK. NO. AMT.
11 Mangino, R. $0.85 $1.65 313 $545.81
12 Flores, I. 0.85 1.65 314 718.97
13 Palmetto, C. 1.65 315 527.59
21 Waters, R. 0.85 1.65 316 785.16
22 Kroll, C. 0.85 1.65 317 711.12
31 Ruppert, C. 0.85 1.65 318 651.49
32 Scott, W. 0.85 1.65 319 606.96
33 Wickman, S. 1.65 320 572.14
51 Foley, L. 0.85 1.65 321 970.20
99 Olney, M. 0.85 1.65 322 1,145.94
Total

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