The ABC Company employs a staff of 30 employees at a total monthly gross pay of $280,000 of which $65,000 already exceeded th the unemployment tax limit and $80,000 already exceeded the maximum social security. The company withholds federal income tax at 20% and state income tax at 3.5% for all employees. In addition, the following tax rates apply; state unemployment tax 5.4%; Social Security tax 6.2%; Medicare 1.45%; Federal Unemployment tax, 0.8%; 1% merit-rate reduction of state unemployment tax from normal rate of 5.4%. REQUIRED: A. Prepare journal entry to record salaries and employee withholding items for the month of April 2023.

III. The ABC Company employs a staff of 30 employees at a total monthly gross pay of $280,000 of which $65,000 already exceeded th the unemployment tax limit and $80,000 already exceeded the maximum social security. The company withholds federal income tax at 20% and state income tax at 3.5% for all employees. In addition, the following tax rates apply; state unemployment tax 5.4%; Social Security tax 6.2%; Medicare 1.45%; Federal Unemployment tax, 0.8%;1% merit-rate reduction of state unemployment tax from normal rate of 5.4%. REQUIRED: A. Prepare journal entry to record salaries and employee withholding items for the month of April 2023