According to a summary of the payroll of Zumwalt Co., $593,500 was subject to a 7.6% FICA tax. Also, $91,993 was subject to state and federal unemployment taxes.

Round your answers to the nearest cent.

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.4%; federal unemployment, 0.9%. $

b. Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders' Equity

SelectAccounts ReceivableCashNo effectItem 2

+

SelectMerchandise InventoryNo effectItem 3

=

SelectAccounts PayableFICA Tax PayableNo effectItem 4

+

SelectSalaries PayableSUTA PayableNo effectItem 5

+

SelectFUTA PayableNotes PayableNo effectItem 6

+

SelectCapital StockRetained EarningsNo effectItem 7

Statement of Cash Flows

Income Statement

SelectFinancingInvestingOperatingNo effectItem 14