Accrue monthly sales salaries expense

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Metro Express has 5 sales employees, each of whom earns $4,000 per month and is paid on the last working day, of the month. Each employee, wages are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholdings for each employee also includes federal income tax of 16% and monthly medical insurance premiums of $110 for each employee.

Prepare the general journal entry to accrue the monthly sales salaries expense at January 31.

The employer payroll taxes for the Metro Express include FICA taxes, federal unemployment taxes of 0.8% of the first $7,000 paid each employee, and state unemployment taxes of 4.0% of the first $7,000 paid to each employee. Prepare the journal entry to record the employer's payroll taxes at January 31 for Metro Express. (Assume that none of the employees has reached the unemployment limit of $7,000.)

Reference no: EM1357536

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