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2. Total payroll of Chestnut Inc. was $1,980,000, of which $560,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to
2. Total payroll of Chestnut Inc. was $1,980,000, of which $560,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $1,550,000. Income taxes withheld were $800,000. The state unemployment tax is 1.2%, the federal unemployment tax is.8%, and the F.I.C.A. tax is 7.65% on an employee's salaries and wages to $128,400 and 1.45% in excess of $128,400. (a) Prepare the journal entry for the salaries and wages paid. Show your calculations for full credit (b) Prepare the entry to record the employer payroll taxes. Show your calculations for full credit
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