Kinsella Inc. has a gross payroll of $13,500 for the pay period. Kinsella must also withhold $1,750 in federal income taxes from the employees and pay state unemployment taxes of $60. Assume the entire payroll is eligible for Social Security and Medicare at standard rates.
Required:
Prepare the necessary journal entries for Kinsella to record both the gross pay earned by employees and the employer portion of these payroll taxes (round to nearest dollar).