2. Below is the payroll information for three of the employees of the Ernst Company.

The company is located in a state that imposes an unemployment insurance tax of 2 percent on the first $7,000. Federal unemployment tax is 0.8 percent: FICA tax is 7.65 percent. Present the journal entry necessary to record the employer's payroll tax expenses.

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Employee ABC Amount Earned to Date Gross Pay for Week $4,000 $100 5,800 250 8,000 200