Answer and Explanation:
The journal entries are shown below:
1. Salaries expense Dr $1,560,000
To Social security tax payable $93,600
To Medicare tax payable $23,400
To Federal income tax withheld payable $312,000
To Salaries payable $1,131,000
(Being the payroll is recorded)
For recording this we debited the salary expense as it increased the expenses and credited all payable as it also increased the liabilities
2. Payroll tax expense Dr $132,600
To Social security tax payable $93,600
To Medicare tax payable $23,400
To State unemployment tax payable ($260,000 × 5.4%) $14,040
To Federal unemployment tax payable ($260,000 × 0.6%) $1,560
(being the payroll tax expense is recorded)
For recording this we debited the payroll expense as it increased the expenses and credited all payable as it also increased the liabilities
