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Bonita Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their

Bonita Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed.

Employee

Earnings to July 31

Weekly Pay

Vacation Pay to Be Received in August

Mark Hamill $5,090 $200 -
Karen Robbins 4,390 150 $300
Brent Kirk 3,590 110 220
Alec Guinness 8,290 250 -
Ken Sprouse 8,890 330 660

Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $118,500 per employee. In addition, a 1.45% rate is charged both employer and employee for an employees wages in excess of $118,500. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the companys liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities

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