Frado Company Provides You with Following Information Related to Payroll

Essay

Frado Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May.
a. Recorded the March payroll using the payroll register information given above.
b. Recorded the employer's payroll taxes resulting from the March payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42,000 of the current months salaries are subject to unemployment taxes. The federal rate is .8%.
c. Issued a check to Swift Bank in payment of the May FICA and employee taxes.
d. Issued a check to the state for the payment of the SUTA taxes for the month of May.
e. Issued a check to Swift Bank in payment of the employer's quarterly FUTA taxes for the first quarter in the amount of $1,360.