Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, $15,000
To Notes payable $15,000
(Being note payable is recorded)
2. Salaries expense Dr, $3,000
To Federal income tax payable $750 (25% × $3,000)
To Social security tax payable $186 (6.2% × $3000)
To Medicare tax payable $43.50 (1.45% × $3,000)
To Health insurance premium payable $250
To Salaries payable $1770.50
(Being salaries expense is recorded)
Payroll tax expense Dr, 409.50
To Social security tax payable $186 (6.2% × $3,000)
To Medicare tax payable $43.5 (1.45% × $3,000)
To FUTA tax payable $18 (0.6% × $3,000)
To SUTA tax payable $162 (5.4% × $3,000)
(Being payroll tax expense is recorded)
3. Salaries payable Dr, $1,770.50
To Cash $1,770.50
(Being cash paid is recorded)
Federal income tax payable Dr, $750
Social security tax payable Dr, $372
Medicare tax payable $87
Health insurance premium payable Dr, $250
FUTA tax payable Dr, $18
SUTA tax payable Dr, $162
To Cash $1,639
(Being cash paid is recorded)
4. Interest expense Dr, $300 ($15,000 × 6% × 4 ÷ 12)
To Interest payable $300
(Being interest expense is recorded)
5. Note payable Dr, $15,000
Interest payable Dr, $300
Interest expense $600 ($15000 × 6% × 8 ÷ 12)
To Cash $15,900
(Being cash paid is recorded)
