Brief Exercise 8-51 Payroll Taxes It's the Tooth Dental works to provide high quality pediatric dental services in a fun-loving environment for children. During December, It's the Tooth Dental employees earned $90,000 in wages. Social Security applied to $86,000 of these wages, while Medicare applies to all $90,000 at standard rates. Federal and state income taxes withheld were $1,100 and $500, respectively, Required: Provide the necessary journal entries for It's the Tooth Dental to record this activity. If an amount box does not require an entry, leave it blank. Wages Expense 90,000 Federal Income Taxes Withholding Payable 5,332 State Income Taxes Withholding Payable 1,305 x Federal Income Taxes Receivable X 1,100 x Medicare Taxes Payable (Employee) 500 X Wages Payable X 81,763 (Record wages and liabilities) Feedback Check My Work In addition to withholdings, the employer pays some payroll taxes. These payments are NOT withheld from the employee