Bailey Dry Cleaners has six employees who were paid the following wages during 2019: Frank Johnson $25,000 16,000 Bill Long Duff Morse 130,000 Laura Stewart Cindy Sharpe Melissa Ledbetter 30,000 27,000 21,000 Total $249,000 The state allows the company a 1% unemployment compensation merit-rating reduction from the normal rate of 5.4%. The federal unemployment 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. A E.L.C.A. tax rate of 8% on the employee and 8% on the employer is applied to the first $117,000 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. PAGE 1 1. Calculate the amount of payroll taxes to be paid by Bailey GENERAL JOURNAL Bailey's total payroll taxes equal $ DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5 6