The summary of the payroll for the monthly pay period ending July 15 indicated the following: salaries 180000 federal income tax withheld 32300 medical insurance withheld 7370 social secuirty tax withheld 10800 medicare tax withheld 2700 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 Cash Salaries Payable Employee Federal Income Tax Payable Employee Medical Insurance Payable Employee FICA Tax Payable Retained Earnings Statement of Cash Flows Income Statement July 15 July 15 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 5.4%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes. Assets = Liabilities + Stockholders' Equity Cash Employee FICA Tax Payable FUTA Tax Payable SUTA Tax Payable Retained Earnings Statement of Cash Flows Income Statement July 15 July 15