For the first week of 2021, Coby Co. pays wages of $3,000 and withholds $600 for federal income taxes and $200 for state income taxes. The combined FICA and Medicare tax rate is 7.65%. The FUTA rate is 0.8% and the SUTA rate is 5.4%.

Record the payroll:

Record the payroll tax:

On November 1, 2021, Coby Co. issued a 3% $5,000 note payable due in 4 months.

Record the issuance of the note on November 1, 2021:

Record the accrual of interest on December 31, 2021:

Record the maturity of the note on March 1, 2022: