Excel Products Inc $\begin{array}{lr}\text { Salaries expense } & \$ 120,000 \\\text { Federal income tax withheld } & 20,000\end{array}$

Essay

Excel Products Inc. pays its employees semimonthly. The summary of the payroll for December 31, indicated the following:? $\begin{array}{lr}\text { Salaries expense } & \$ 120,000 \\\text { Federal income tax withheld } & 20,000\end{array}$ For the year ended December 31, $40,000 of the December 31 payroll is subject to social security tax of 6.0%; $120,000 is subject to Medicare tax of 1.5%; $10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%. As of January 1, of the following year, all of the $120,000 is subject to all payroll taxes.Prepare the journal entries for payroll tax expense if the employees are paid
(a) December 31 of the current year or (b) January 2 of the following year.