Which company would have a greater ability to pay interest expense if sales were to decrease?

Problem $9-6$A Entries for payroll transactions

Francisco Company has $10$ employees, each of whom earns $$2,800$ per month and is paid on the last day of each month. All $10$ have been employed continuously at this amount since January $1.$ On March $1,$ the following accounts and balances exist in its general ledger.

a$.$ FICA$-$Social Security Taxes Payable, $$3,472$; FICA$-$Medicare Taxes Payable, $$812.($The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the rebruary payroll only.$)$

b$.$ Employees' Federal Income Taxes Payable, $$4,000($liability for February only$).$

c$.$ Federal Unemployment Taxes Payable, $$336($liability for January and February together$).$

d$.$ State Unemployment Taxes Payable, $$3,024($liability for January and February together$).$

The company had the following payroll transactions.

Page $378$

Mar. $15$ Issued check payable to Swift Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and employee income tax withholdings. The $$8,284$ check is in payment of the February FICA and employee income taxes.

$31$ Recorded the journal entry for the March salaries payable. Then recorded the cash payment of the March payroll $($the company issued checks payable to each employee in payment of the March payroll$).$ The payroll register shows the following summary totals for the March pay period.