The following information about the payroll for the week ended September 15 was obtained from the records of Simkins Mining Co.:

Salaries and wages:				Deductions:
Sales salaries		$15,000		Income tax withheld		$8,500
Employee Wages		20,000		U.S. savings bonds		1,000
Office salaries		10,000		Group insurance		3,000
		$45,000

ax 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 September 15 payroll, determine the employee FICA tax payable. $ 2. Illustrate the effect on the accounts and financial statements of paying the September 15 payroll. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Assets = Liabilities + Stockholders' Equity Cash = Employee income tax payable + FICA tax payable + Bond deduction payable + Group insurance payable + Retained earnings Sept. 15. Statement of Cash Flows Income Statement Operating Sales salaries expense Employee wages expense Office salaries expense 3. Determine the following amounts for the employer payroll taxes related to the September 15 payroll: (a) FICA tax payable, (b) state unemployment tax payable, and (c) federal unemployment tax payable. Assume all salaries and wages are subject to statement and federal unemployment taxes. a. FICA tax payable $ b. State unemployment tax payable $ C. Federal unemployment tax payable 4. Illustrate the effect on the accounts and financial statements of recording the liability for the September 15 employer payroll taxes. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Assets = Liabilities + Stockholders' Equity No effect = FICA tax payable + SUTA payable + FUTA payable + Retained earnings Sept. 15. Statement of Cash Flows Income Statement No effect Payroll tax expense