Employees at South Side Ltd are paid on a monthly basis. The payroll is processed on the 6th day of the month and payable on the 7th day of the month. Gross salaries for June were $450, 000 from which $122,500 was deducted in tax. All of South Side Ltds salaries are accounted for as expenses. Deductions for health insurance were $30,000. Payments for health insurance and employee withheld income taxes are due on the 15th day of the following month.

Required :

1. Prepare all journal entries to record the June payroll, the payment of June salaries and the remittance of deductions. (8 marks)

2. Calculate the balance of the Accrued Payroll account at the end of June. (6 marks)