ecording Payroll Taxes

According to a summary of the payroll of PJW Co$,$ $$380,500$ in earnings were subject to the $7\mathrm{.}8\%$ FICA tax. Also, $$39,953$ in earnings were subject to state and federal unemployment taxes.

Round your answers to the nearest cent.

a$.$ Calculate the employer's payroll taxes, using the following rates: state unemployment, $4\mathrm{.}7\%$; federal unemployment, $0\mathrm{.}8\%.$

b$.$ Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes. If no account or activity is affected, select $"$No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Balance Sheet

Assets

Liabilities

Stockhold

Assets

$=$

Equity

$+=++$

Income Statement

Statement of Cash Flows