Critical Thinking Problem $10\mathrm{.}1($Static$)$ Payroll Accounting LO $10-2,10-3,10-4,10-5,10-6,10-7$Beach Vacations pays salaries and wages on the last day of each month. Payments made on December $31,20$X$1,$ for amounts incurred during December are shown below. Cumulative amounts paid prior to the December $31$ payroll for the persons named are also shown.Francis Fisher, president, gross monthly salary, $$12,000$; gross earnings paid prior to December $31,$ $$132,000.$Sandy Swartz, vice president, gross monthly salary, $$10,000$; gross earnings paid prior to December $31,$ $$100,000.$Juan Rios, independent accountant who audits the companys accounts and performs certain consulting services, $$10,000$; gross amount paid prior to December $31,$ $$25,000.$Harry House, treasurer, gross monthly salary, $$5,500$; gross earnings paid prior to December $31,$ $$60,500.$Payment to Daily Security Services for Eddie Martin, a security guard who is on duty on Saturdays and Sundays, $$1,000$; amount paid to Daily Security Services prior to December $31,$ $$10,000.$Required:Assume a $1\mathrm{.}45$ percent Medicare tax rate on all salaries and wages earned by the employee during the year. Assume a $6\mathrm{.}2$ percent social security rate on the first $$142,800$ earned by the employee during the year and prepare a schedule showing the following information:Each employees cumulative earnings prior to December $31.$Each employees gross earnings for December.The amounts to be withheld for each payroll tax from each employees earnings $($employee income tax withholdings for Fisher are $$3,080$; for Swartz, $$2,500$; and for House, $$800).$The net amount due each employee.The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees.Record the general journal entry for the companys payroll on December $31.$Record the general journal entry for payments to employees on December $31.$Analyze:What is the balance of the Salaries Payable account after all payroll entries have been posted for the month?