Brief Exercise 8-50 (Algorithmic) Payroll Taxes Champaign Inc., a company that provides educational consulting services to large universities across the nation, has a gross payroll of $26,000 for the pay period. The entire payroll is subject to Social Security and Medicare taxes. Champaign must also withhold $2,860 in federal income tax from the employees and pay state unemployment tax of $75. Assume that the Social Security tax rate is 6.2%, and Medicare tax rate is 1.45%. Required: Provide the necessary journal entries for Champaign to record these payroll taxes (round to nearest penny). If an amount box does not require an entry, leave it blank. Wages Expense 70,000 State Security Taxes Receivable 4,340 Federal Income Taxes Receivable 1,015 Medicare Taxes Payable (Employee) 7,700 Wages Expense 56,945 (Record wages and liabilities) 5,430 Medicare Taxes Payable (Employer) Social Security Taxes Payable (Employer) 4,340 Medicare Taxes Payable (Employer) 1,015 State Unemployment Taxes Payable 75 (Record employer payroll taxes)