Liam Wallace is general manager of National Salons. During 2018, National Salons incurred payroll tax expense on Worthington for FICA Wallace worked for the company all year at a $9,600 monthly salary. tax. The company also paid state unemployment tax and federal He also earned a year-end bonus equal to 20% of his annual salary unemployment tax. Wallace's federal income tax withheld during 2018 was $1,920 per (Click the icon to view payroll tax rate information.) month, plus $3,456 on his bonus check. State income tax withheld came to $170 per month, plus $70 on the bonus. FICA tax was withheld on the annual earnings. Wallace authorized the following Read the requirements. payroll deductions: Charity Fund contribution of 1% of total earnings and life insurance of $50 per month. Requirement 1. Compute Wallace's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. Begin by computing Wallace's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Gross Pay Now compute Wallace's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.) Net pay: Withholding deductions: Net (take-home) pay Requirement 2. Compute National Salons total 2018 payroll tax expense for Worthington. (Round all amounts to the nearest dollar.) Employer Payroll Taxes: Total Employer Payroll Tax Total Payroll Expense Requirement 3. Make the journal entry to record National Salons expense for Wallace's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Requirement 4. Make the journal entry to record the accrual of National Salons payroll tax expense for Wallace's total earnings. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit