Journalizing payroll and payroll tax entries. The data and instructions given below relate to the Wyoming Corporation for the month of July 19X6. The beginning credit balance of the Factory Payroll Clearing account on July 1 is $12,340, representing unpaid wages earned by employees during the last three days of June.

Instructions 1.Set up a Factory Payroll Clearing account and enter the balance.
2.Journalize the summary of weekly and semimonthly payrolls paid during the month. Use the account titles in your textbook with the data shown here.
Total gross wages $73,170 Income taxes withheld $10,243 FICA taxes withheld 4,830 Group insurance deductions 1,553 3. Journalize the charging of labor costs to production. The summary of factory wages for the month shows direct labor costs of $59,206 and indirect labor costs of $11,484.

4. Journalize the employer's payroll taxes. Assume a federal unemployment tax rate of .8 percent and a net state unemployment tax rate of 4.6 percent. The employ- er's FICA taxes amounted to $4,830. The wages subject to unemployment taxes amounted to $58,110.

5. Post the journal entries to the Factory Payroll Clearing account.

6. Explain where the balance of the Factory Payroll Clearing account on July 31 is shown on the financial statements.