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Instructions Wallace Corporation summarizes the following information from its weekly payroll records during April Federal Income Tax Type of Salary Office Staff Gross Pay $71,000 F.L.C.A. Tax $5,680 State Income Tax $2,000 Net Pay $58,137 $5,183 Required: Prepare the two journal entries to record the payment of the payroll and the accrual of its payroll Taxes for April Assume an 8% ELC A rate for both employees and the employer. Also assume a 54% state unemployment tax rate, a 0.6% federal unemployment tax rate, and that all wages are subject to all payroll taxes. CHART OF ACCOUNTS Wallace Corporation General Ledger REVENUE 411 Sales Revenue ASSETS Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense LIABILITIES 211 Accounts Payable 224 FICA Taxes Payable 225 Federal Income Taxes Withholding Payable 226 State Income Taxes Withholding Payable 227 Federal Unemployment Taxes Payable 228 State Unemployment Taxes Payable 231 Sa aries Pavabile 522 Payroll Taxes Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense ACCOUNT TITLE POSTRES Apr. 30 Salaries Expense DEBIT 71.000.00 Cash 71,000.00 Apr. 30 16.697.00 5,680.00 2.000.00 Salaries Payable FICA Taxes Payable State Income Taxes Withholding Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Salaries Expense 5.183.00 3,834.00 Apr. 30 58.137.00 Cash 58.137.00

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