(Payroll Tax Entries) The payroll of Rene Auber Company for September 2003 is as follows.

Total payroll was $480,000, of which $110,000 is exempt from Social Security tax because it represented amounts paid in excess of $84,900 to certain employees. The amount paid to employees in excess of $7,000 was $400,000. Income taxes in the amount of $90,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5%, but Auber Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current F.I.C.A. tax is 7.65% on an employee’s wages to

$84,900 and 1.45% in excess of $84,900. No employee for Auber makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit.

Instructions Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.