Browning Appraisal Service has the following payroll informa¬

tion for the week ended December 7.

Assumed tax rates are as follows:

a. FICA: Social Security, 6.2 percent (.062) on the first $62,700 for each employee and Medicare, 1.45 percent (.0145) on all earnings for each employee.

b. State unemployment tax, 5.4 percent (.054) on the first $7,000 for each employee.

c. Federal unemployment tax, .8 percent (.008) on the first $7,000 for each employee.
Instructions 1. Complete the payroll register, page 72.
2. Prepare a general journal entry to record the payroll as of December 7. The company’s general ledger contains a Salary Expense account and a Salaries Payable account.
3. Prepare a general journal entry to record the payroll taxes as of December 7.
4. Assuming that the firm uses a special payroll bank account, make the entries in the general journal to record the transfer of cash to the Cash-Payroll Bank Account and the payment of salaries, Ck. No. 412, on December 9. Payroll Check Figure checks begin with Ck. No. 714 in the payroll register. Payroll Tax Expense, $272.13

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DEDUCTIONS NAMI Ames, C. P. BEGINNING. CUMULATIVE EARNINGS TOTAL EARNINGS FEDERAL INCOME TAX STATE INCOME TAX 620000 45000 57 00 11 00 Bell, D. R.. 680000 47000 Carr, N. O.. 3640000 74000 Dunn, G. M. 27 10000 55000 Eng, N. Bi 64 20000 111000 Fry, C. A. 29 9 0000 170 600 00 393000 61000 8600 135 00 7600 50700 13 00 1800 1 7 00 37 00 15 00 111 00 6400 89 00