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Salaries The summary of the payroll for the monthly pay period ending July 15 Indicated the following: $180,000 Federal income tax with held 32,300 Medical

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Salaries The summary of the payroll for the monthly pay period ending July 15 Indicated the following: $180,000 Federal income tax with held 32,300 Medical Insurance withheld 7,370 Social security tax withheld 10,800 Medicare tax withheld 2,700 a. Illustrate the effects on the accounts and the financial statements of the payroll. Employee FICA Tax Includes social security tax and medicare tax withheld. Assets Liabilities + Stockholders' Equity Employee Federal Income Employee Medical Employee FICA Tax Retained Cash Tax Payable Insurance Payable Payable Earnings 32,300 7,370 13,500 Statement of Cash Flows Income Statement July 15 Operating Activities July 15 Wages and Salaries Expense 180,000 b. Illustrate the effects on the accounts and the financial statements of the employer's payroll tax expense for the month. The state unemployment tax rate is 4.2%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes. Liabilities + Stockholders' Equity Cash Employee FICA Tax Payable FUTA Tax Payable SUTA Tax Payable Retained Earnings Assets Statement of Cash Flows No Effect Income Statement Payroll Tax Expense July 15 July 15 Feedback Check My Wort Partially correct

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