According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes. Required: a. Compute the employer's payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%. $ 38,975 b. Journalize the entry for the employer's payroll tax expense. If an amount box does not require an entry, leave it blank. Payroll Tax Expense Social Security Tax Expense Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable 38,975 30,300 8,175 420 80

According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6,0% socal security tax and $545,000 was subject to the 1.5% Medicure tax. Also, $10,000 was subject to state and federel unemployment taxes. Required: a. Compute the employer's poyroll taxes usung the following rates: 5 tate unemployment; 4.2%; federal unemplorment, 0.6%