Muller Corp. pays its employees monthly. The payroll information listed below is for January, 2009, the first month of Muller's fiscal year.
Required:
Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2009 pay period.
$$\begin{array} { l r }
\text { Salaries } & \$ 400,000 \
\text { Federal income taxes to be withheld } & 80,000 \
\text { Federal unemployment tax rate } & 0.80 \% \
\text { State unemployment tax rate (after FUTA deduction) }& 5.40 \% \
\text { Social security tax rate } & 6.2 \% \
\text { Medicare tax rate } & 1.45 \%
\end{array}$$

Question

Muller Corp. pays its employees monthly. The payroll information listed below is for January, 2009, the first month of Muller's fiscal year.
Required:
Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2009 pay period.
 $$\begin{array} { l r } 
\text { Salaries } & \$ 400,000 \
\text { Federal income taxes to be withheld } & 80,000 \
\text { Federal unemployment tax rate } & 0.80 \% \
\text { State unemployment tax rate (after FUTA deduction) }& 5.40 \% \
\text { Social security tax rate } & 6.2 \% \
\text { Medicare tax rate } & 1.45 \%
\end{array}$$

Quizplus · Accepted Answer

The Answer of Muller Corp. pays its employees monthly. The payroll information listed below is for January, 2009, the first month of Muller's fiscal year.
Required:
Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2009 pay period.
 $$\begin{array} { l r } 
\text { Salaries } & \$ 400,000 \
\text { Federal income taxes to be withheld } & 80,000 \
\text { Federal unemployment tax rate } & 0.80 \% \
\text { State unemployment tax rate (after FUTA deduction) }& 5.40 \% \
\text { Social security tax rate } & 6.2 \% \
\text { Medicare tax rate } & 1.45 \%
\end{array}$$