On January 31, record employee salary expenses. Debit Salaries Expense for $87,000. Credit Federal Withholding Taxes, Social Security Taxes, and Medicare Taxes Payable for applicable withholdings. Also, credit State Withholding Taxes Payable. Finally, credit Salaries Payable for the net amount payable to employees.
## Journal Entry Worksheet
Date: January 31
Transaction: Record the employee salary expense, withholdings, and salaries payable.
General Journal:
| Account Title | Debit | Credit |
|---|---|---|
| Salaries Expense | | |
| Federal Withholding Taxes Payable | | |
| Social Security Taxes Payable | | |
| Medicare Taxes Payable | | |
| State Withholding Taxes Payable | | |
| Salaries Payable | | |
Step-by-step explanation:
* Salaries Expense: This account is debited for the total amount of gross salaries earned by employees during the period. This amount is $87,000.
* Federal Withholding Taxes Payable: This account is credited for the amount of federal income taxes withheld from employees' paychecks. This amount will need to be remitted to the IRS at a later date.
* Social Security Taxes Payable: This account is credited for the employer's portion of Social Security taxes. This amount is equal to 6.2% of the total gross salaries paid.
* Medicare Taxes Payable: This account is credited for the employer's portion of Medicare taxes. This amount is equal to 1.45% of the total gross salaries paid.
* State Withholding Taxes Payable: This account is credited for the amount of state income taxes withheld from employees' paychecks. This amount will need to be remitted to the state government at a later date.
* Salaries Payable: This account is credited for the net amount of salaries payable to employees. This amount is equal to the total gross salaries earned minus the amount of withholdings.
Note: The specific amounts for each account need to be calculated based on the actual payroll information. The information provided is not sufficient to determine these amounts.