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Kris Kringle Company has one employee who is paid a salary of $8,000 per month. Federal income tax withheld was $220. State income tax withheld was $60.The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45%. The federal unemployment (FUTA) tax rate is 0.8% on the first $7,000 of wages. The state unemployment (SUTA) tax rate is 5.4% on the first $7,000 of wages. In addition, $590 of medical insurance was withheld from the employees pay.

Prepare Kringles journal entry to record the first months salary expense. Round to the nearest cent.

Date	Account Name	Debit	Credit

Prepare Kringles journal entry to record the employers payroll taxes for the first weeks payroll.

Date	Account Name	Debit	Credit

Bona Foodie Company has one employee who is paid a salary of $10,000 per month. Payroll information for the first month of the year is:

Federal income tax withheld	$3,600
FICA social security tax rate	6.2%
FICA medicare tax rate	1.45%
Federal unemployment (FUTA) tax rate (on the 1st $7,000 of wages)	0.8%
State unemployment (SUTA) tax rate (on the 1st $7,000 of wages)	5.4%
Medical insurance deduction (paid by employee)	$600

Part I: Prepare Bona Foodie Companys journal entry to record the first months salary expense and employee withholdings. Payroll tax expense will be recorded in part 2.

Date	Account Name	Debit	Credit

Part 2: Prepare Bona Foodie Companys journal entry to record employer payroll taxes for the first months payroll.

Date	Account Name	Debit	Credit

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