Employees' total earnings $50,000 Deductions from earnings: Federal income tax $8,000 State income tax 2,000 Social Security tax 3,100 Medicare tax 725 Medical insurance 1,000 Total deductions 14,825 Take-home pay $35,175

Use the data in the spreadsheet to:

a. Prepare the entry to record the weekly salary. The salaries will not be paid until May 20.

b. Prepare the entry to record the employer's payroll tax expense. In addition to the data for Social Security and Medicare in the table, which the employer must also pay, assume a 0.8% federal unemployment tax rate and a 5.4% state unemployment tax rate. Also assume that all wages are subject to these two taxes.

c. Indicate the effect of the journal entries above on the accounting equation.

Each row in the table corresponds to the row in the journal. The total cost of labor for Voss, Inc., for this period is $ In the future, as each of the payroll liabilities are paid, the liability will be ____ And Cash will Be ___ Employees' total earnings $50,000 Deductions from earnings: Federal income tax $8,000 State income tax 2,000 Social Security tax 3,100 Medicare tax 725 Medical insurance 1,000 Total deductions 14,825 Take-home pay $35,175