Acme Company has a January 15 mid-month gross salaries expense of $25,000. All is subject to FICA

Question:

Acme Company has a January 15 mid-month gross salaries expense of $25,000. All is subject to FICA Social Security (6.2%), FICA Medicare (1.45%), state income tax (5%) and federal income tax (15%) withholdings. Additionally, all is subject to employer taxes to include FUTA (0.8%) and SUTA (5.4%) taxes.
Required:
a. Prepare the general journal entry to record the employer's payroll liability.
b. Prepare the general journal entry to record the employer's payroll-tax liability.
c. Prepare the general journal entry to liquidate the liabilities accrued in parts (a) and (b) on January 22.