For the year ended December 31, 2012, Radar Company reports the following summary payroll data.

Radar Company?s payroll taxes are: FICA 8%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to FICA taxes total $370,000, and gross earnings subject to unemployment taxes total $90,000.

Instructions

(a) Prepare a summary journal entry at December 31 for the full year?s payroll.

(b) Journalize the adjusting entry at December 31 to record the employer?s payroll taxes.

(c) The W-2 Wage and Tax Statement requires the dollar data shownbelow.

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Gross earnings: Deductions: FICA taxes Federal income taxes withheld State income taxes withheld (3%) United Fund contributions payable Health insurance premiums Total Administrative salaries Electricians' wages Total $150,000 240,000 $390.000 $ 29.600 78,000 11,700 17,000 12.000 $148.300