Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2013, the first month of BMS's fiscal year. Assume none of the employees' earnings reached $7,000 during the month. Salaries $96,000 Federal income taxes to be withheld 30,000 Federal unemployment tax rate .80% State unemployment tax rate (after FUTA deduction) 5.40% Social security tax rate 6.2% Medicare tax rate 1.45% The journal entry to record payroll for the January 2013 pay period will include a debit to payroll tax expense of: a) $13,296b) $7,344c) $58,656d) $5,952

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan