Problem $9-23$A $($Algo$)$ Accounting for payroll and payroll taxes LO $9-5$

Electronics Service Company pays salaries monthly on the last day of the month. The following information is available from

Electronics for the month ended December $31,$ Year $1.$

Assume the Social Security tax rate is $6\mathrm{.}0$ percent on the first $$110,000$ of salaries. Duke reached $$110,000$ before September. His

salary in December amounted to $$12,000$ and is included in the $$73,000.$ No one else will reach the $$110,000$ amount for the year.

None of the employee salaries are subject to unemployment tax in December. Assume the Medicare tax rate is $1\mathrm{.}5\%$ of total salaries.

Other amounts withheld from salaries in December were as follows:

Federal income tax

State income tax

Employee savings plan

$$16,000$

$7,400$

$2,600$

Required

a$.$ Prepare the journal entry to record the payment of payroll on December $31,$ Year $1.$

b$.$ Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year $1.$

$($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheetJournal entry worksheet

Record the entry for payroll tax expense for Electronics Service Company for

December Year $1.$

Note: Enter debits before credits.