Harris Insurance Agency has the following information for the week ended December 14:

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 14. 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 14.
4. Assuming that the firm uses a special payroll bank account, make the entries in t’ e general journal to record the transfer of cash to the Cash-Payroll Bank Act lunt and the payment of salaries, Ck. No. 317, on December 16. Payroll chec s begin within Ck. No. 923 in the payroll register.

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NAME Beem, M.A. BEGINNING CUMULATIVE EARNINGS 920000 37 9 0000 TOTAL EARNINGS 31000 760 00 108000 29000 59000 Clay, C. E. Ebel, S. T. Getz, R. R. 61 800 00: 640000 Hunt, N. C. 29 600 00 Marr, W. J. 47 400 00 192 300 00 398000 95000 DEDUCTIONS FEDERAL INCOME TAX 3 100 9900 177 00 2600 7300 149 00 555 00 STATE INCOME TAX 6|00 2000 3 5 00 5 00 15 00 3000 11 100