Assume an employee of Rocco Rock Company earns $1,200 of gross wages during the current pay period and is required to remit to the government $120 for income tax and $60 for FICA. Consider the following two procedures for paying the employee: Procedure 1 (Withholdings) Procedure 2 (No Withholdings) Rocco Rock Company pays the Rocco Rock Company pays the employee employee net wages of $1,020 and will gross wages of $1,200 and the employee remit income taxes and FICA on behalf is responsible for remitting income taxes of the employee. and FICA himself. Required: 1-a. Ignoring employer payroll taxes, under each procedure calculate (a) the total labor cost for the company and (b) the amount of cash the employee will have after satisfying all responsibilities to the government. Total Labor Cost Amount of Cash Procedure 1 (Withholdings) Procedure 2 (No withholdings) 1-b. Do your answers for procedures 1 and 2 differ for (a)? for (b)? Yes O No 2. Which approach does the government require? 2. Which approach does the government require? O Procedure 1 (Withholdings) O Procedure 2 (No withholdings) 3. Considering that employers are responsible for matching employees' FICA contributions, which procedure will employers prefer? O Procedure 1 (Withholdings) O Procedure 2 (No withholdings) 4. Prepare the journal entries required by the employer under procedure 1, assuming that the employee is paid in cash, but the withholdings and matching employer FICA contribution have not yet been paid. (Assume no unemployment taxes.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)