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Lee Financial Services pays employees monthly. Payroll information is listed below for January 2011, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.
Salaries $500,000Federal income taxes to be withheld 100,000Federal unemployment tax rate 0.80%State unemployment tax rate (after FUTA deduction)5.40%Social Security (FICA) tax rate 7.65%
problem 1: Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2011 pay period.
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