For the employees of McKinley Plastics Company, the gross pay and the federal income tax withheld in the first week of February 2000 were as follows:

Gross Income Employee Pay Tax Withheld Carver, James $600 $ 84 Webb, Steve 700 108 Bailey, Doreen 800 154 For simplicity, assume FICA taxes are withheld at an 8% rate. FUTA taxes are 6.2%, Each employee has a $5 union fee deducted from each paycheck.

Required: (1) Compute the net amount paid to each employee.
(2) Compute the total salaries expense and payroll tax expense incurred by McKinley for the first week of February.
(3) Using T-accounts, record

(a) the salaries expense and

(b) the payroll tax expense of McKinley for the first week of February, assuming the FICA taxes, FUTA taxes, and union dues will be remitted by McKinley in March.

 TYK-1