Below is a payroll sheet for Otis Import Company for the month of September $2020.$ The

$\backslash$table$[[$company is allowed a$,5\mathrm{.}40\%,$unemployment compensation rate by the state; the federal unemployment$],[$tax rate is$,0\mathrm{.}60\%,$and the maximum for both is$,$$$9,000,.$ Assume a$,12\%,$federal$],[$income tax rate for all employees and a$,7\mathrm{.}65\%,\{$

$\backslash$table$[[$FICA tax on employee and employer on a maximum of$],[$employer and employee for an employee's wages in excess$]]\}],[$$$132,900,$In addition,,$1\mathrm{.}45\%,$is charged both employer and employee for an employee's wages in excess$],[$of$,$$$132,900,$per employee.$],[$Name$,\backslash$table$[[$Earnings to$],[$Aug $31]],\backslash$table$[[$September$],[$Earnings$]],\backslash$table$[[$Income Tax$],[$Withholding$]],$F$.$I.C$.$A$.,\backslash$table$[[$State$],[$U$.$C$.]],\backslash$table$[[$Federal$],[$U$.$C$.]],],[$B$.$D$.$ Williams,$$8,600,$$$800,,,,,],[$D$.$ Raye,$8,100,700,,,,,],[$K$.$ Baker,$9,800,1,100,,,,,],[$F$.$ Lopez,$13,600,1,900,,,,,],[$A$.$ Daniels,$119,000,16,000,,,,,],[$B$.$ Kingston,$126,000,19,600,,,,,]]$

Instructions:

$($a$)$ Complete the payroll sheet and make the necessary entry to record the payment of the payroll.

$\backslash$table$[[$Name$,\backslash$table$[[$Earnings to Aug.$],[31]],\backslash$table$[[$September$],[$Earnings$]],\backslash$table$[[$Income Tax$],[$Withholding$]],$FICA,State U$.$C$.,$Federal U$.$C$.],[$B$.$D$.$ Williams$],[$D$.$ Raye$],[$K$.$ Baker$],[$F$.$ Lopez$],[$A$.$ Daniels$],[$B$.$ Kingston$],[$Total$,,,,,,]]$

Journal entry

$\backslash$table$[[,,],[,,],[,,],[,,]]$

$($b$)$ Make the entry to record the payroll tax expenses of Otis Import Company.

$($c$)$ Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.

Journal entry: