Bailey Dry Cleaners has six employees who were paid the following wages during the year: The state unemployment tax rate is 5.4%. The federal unemployment tax rate is 0.6%. The maximum unemployment wages per employee are $7,000 for both the state and the federal government. Income tax withholdings of 20% are applied to all employees. AFICA tax rate of 8% on the employee and 8% on the employer is applied to the first $147,000 of each employee's wages. Required: 1. Calculate the amount of payroll taxes to be paid by Bailey. 2. Prepare the journal entries to record the payment of payroll and the payroll tax expense. CHART OF ACCOUNTS Bailey Dry Cleaners General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation LLABILITIES 211 Accounts Payable 225 Federal Income Taxes Withholding Payable 226 State Income Taxes Withholding Payable 227 Federal Unemployment Taxes Payable 228 State Unemployment Taxes Payable 229 FICA Taxes Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 522 Payroll Taxes Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense 2. Prepare the journal entries to record the payment of payroll tax expense on December 31. General Joumal instructions Question not attempted. Feedback Check My Work Prepare two entries on December 31. The first is for the cc payroll. It is total wages less amounts held from employee: tax and social security. The second is the employer payroll and accrual. 1. Calculate the amount of payroll taxes to be paid by Bailey. Bailey's total payroll taxes equal Feedback Check My Work Use the rates provided to determine the amount of payroll tax for which the employer is responsible