EX 10-11

According to a summary of the payroll of Mountain Streaming Co., $120,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $30,000 was subject to state and federal unemployment taxes.

a. determine the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.

b. journalize the entry to record the accrual of payroll taxes.