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3.) Payroll Liabilities -Paragon Corporation has one employee Mr. Smith. Mr. Smith's earnings for the week ended July 31 amounted to $1,890. His federal and
3.) Payroll Liabilities -Paragon Corporation has one employee Mr. Smith. Mr. Smith's earnings for the week ended July 31 amounted to $1,890. His federal and state income taxes are $226.80 and $68.40, respectively. Assume that all of Mr. Smith's wages are subject to Social Security and Medicare and that the employer is levied unemployment taxes on all employee wages. Use tax rates provided in class. a.) Calculate Mr. Smith's net pay for the July 31" pay period. Round to two decimal places and show your work. b.) Prepare the journal entry to record Mr. Smith's payroll assuming Mr. Smith is paid on July 31. Date Accounts Debit Credit c.) Prepare the journal entry to record the employer's payroll taxes. Date Accounts Debit Credit 3.) Payroll Liabilities -Paragon Corporation has one employee Mr. Smith. Mr. Smith's earnings for the week ended July 31 amounted to $1,890. His federal and state income taxes are $226.80 and $68.40, respectively. Assume that all of Mr. Smith's wages are subject to Social Security and Medicare and that the employer is levied unemployment taxes on all employee wages. Use tax rates provided in class. a.) Calculate Mr. Smith's net pay for the July 31" pay period. Round to two decimal places and show your work. b.) Prepare the journal entry to record Mr. Smith's payroll assuming Mr. Smith is paid on July 31. Date Accounts Debit Credit c.) Prepare the journal entry to record the employer's payroll taxes. Date Accounts Debit Credit
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