On January 14, at the end of the second week of the year, the totals of Broadmoor Floor Covering’s payroll register showed that its store employees’ wages amounted to $29,260, and its installers’ wages amounted to

$10,240. Withholdings consisted of federal income taxes, $3,980; Social Security taxes at the rate of 6.2 percent of the first $62,700; Medicare taxes at the rate of 1.45 percent on all earnings; union dues, $410.

a. Calculate the amount of Social Security and Medicare taxes to be withheld, and write the general journal entry to record the payroll. Assume the company uses a special payroll bank account.

b. Write the general journal entry to record the employer’s payroll taxes, assum¬

ing that the federal unemployment tax is .8 percent of the first $7,000 and the state unemployment tax is 5.4 percent of the same base and that no employee has surpassed the $7,000 limit.