E10-5 Journalize payroll entries During the month of March, Munster Company's employees earned wages of $64,000. Withholdings related to these wages were $4,896 for Social Security (FICA), $7,500 for federal income tax, S3,100 for state income tax, and $400 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $700 for state unemployment tax. Instructions (a) Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (b) Prepare the entry to record the company's payroll tax expense. E10-10. Prepare entries for issuance of bonds, balance sheet presentation and cause of deviations from face value. Arroyo Company issued $600,000, 10-year, 6% bonds at 103. Instructions (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (b) Suppose the remaining Premium on Bonds Payable was s10.800 on December 31, 2020. Show the balance sheet presentation on this date. (c) Explain why the bonds sold at a price above the face amount