The payroll record for the two employees at December 31:
Account Title Debit Credit
Salaries Expense 16,800.00
Federal Income Tax Withholding Payable 3,570.00
State Income Tax Withholding Payable 640.00
FICA Tax Payable 1,261.50
Phaedra Hise, Salary Payable 11,990.00
Richard Tangard, Salary Payable 7,000.00
Salaries Expense: This account is debited for the total salaries paid to the employees. In this case, the total salaries paid are $16,800.
Federal Income Tax Withholding Payable: This account is credited for the amount of federal income tax withheld from the employees' paychecks. In this case, the total federal income tax withheld is $3,570.
State Income Tax Withholding Payable: This account is credited for the amount of state income tax withheld from the employees' paychecks. In this case, the total state income tax withheld is $640.
FICA Tax Payable: This account is credited for the amount of FICA tax withheld from the employees' paychecks. FICA tax is a payroll tax that is used to fund Social Security and Medicare. In this case, the total FICA tax withheld is $1,261.50.
Phaedra Hise, Salary Payable: This account is credited for the amount of salary paid to Phaedra Hise. In this case, Phaedra Hise was paid $11,990.
Richard Tangard, Salary Payable: This account is credited for the amount of salary paid to Richard Tangard. In this case, Richard Tangard was paid $7,000.
Complete question
Phaedra Hise had earned total salary of $120,000 through November 30. Her December salary is $9,800. Richard Tangard began employment on December 1 and will be paid his first month's salary of $7,000 on December 31. Income tax withholding for December for each employee is as follows: Federal Income Tax State Income Tax Phaedra Hise $2,180 390 Richard Tangard $1,390 250 FICA tax on the first $128,400 of earnings per employee is 7.65% (1.45% over 128,400). Record the payroll for the two employees at December 31. (Round answers to 2 decimal places, e.g. 15.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.