Brennan Corporation employs 43 production workers and pays them all the same salary. Brennan employs 66 administrative staff personnel and pays them all the same salary. The following annual information is available for each employee group.

Description - Production -Administrative

Salaries & wages $2,150,000 570,000

Federal income tax rate 16% 25%

State & local income tax rate 9% 11%

FICA & Medicare tax rate 7.65% 7.65%

Federal tax unemployment tax-effective 2.4% 2.4%

State unemployment Tax-effective (wage cap 1.4% 1.4%

Per employee = $7000)

a) Prepare a journal entry to record the annual payroll. Begin by calculating the tax amounts for the production employees.

Production employees/ wage base/ times Tax rate = Tax

Federal income tax ___ ______ = ___

State & local income tax ____ ______ = ____

Social Security (FICA) taxes _____ ______ _____

Medicare taxes _____ ______ _____

b) Prepare the journal entry to pay the liability for accrued salaries

c) Prepare the journal entry necessary to record Brennan's payroll tax expense for the annual payment.