Recording Payroll and Payroll Taxes The following information about the payroll for the week ended October 4 was obtained from the records of Simkins Mining Co.: Salaries: Deductions: Sales salaries Employee Wages Office salaries 517,000 2,000 6,000 $30,000Income tax withheld 40,000 20,000 90,000 U.S. savings bonds Group insurance Tax rates assumed: FICA tax, 7.5% of employee annual earnings State unemployment (employer only), 4.2% Federal unemployment (employer only), 0.8% Instructions: 1. For the October 4 payroll, determine the employee FICA tax payable 6,750 2. Illustrate the effect on the accounts and financlal statements of recording the October 4 payroll. If no account or actlvity is affected, select "No effect" from the dropdown st and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Statement of Assets Liabilities Stockholders' Equity Cash Flows No effectNo effect X No effect X + No effect X No effect XNo effect X + No effect X October 4 58,250 X 58,250X Statement of Cash Flows Income Statement Investing X 58,250 X Sales salaries expense 30,000 Employee wages expense 40,000 Recording Payroll and Payroll Taxes The following information about the payroll for the week ended October 4 was obtained from the records of Simkins Mining Co.: Salaries: Deductions: Sales salaries Employee Wages Office salaries 517,000 2,000 6,000 $30,000Income tax withheld 40,000 20,000 90,000 U.S. savings bonds Group insurance Tax rates assumed: FICA tax, 7.5% of employee annual earnings State unemployment (employer only), 4.2% Federal unemployment (employer only), 0.8% Instructions: 1. For the October 4 payroll, determine the employee FICA tax payable 6,750 2. Illustrate the effect on the accounts and financlal statements of recording the October 4 payroll. If no account or actlvity is affected, select "No effect" from the dropdown st and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Statement of Assets Liabilities Stockholders' Equity Cash Flows No effectNo effect X No effect X + No effect X No effect XNo effect X + No effect X October 4 58,250 X 58,250X Statement of Cash Flows Income Statement Investing X 58,250 X Sales salaries expense 30,000 Employee wages expense 40,000