P10.4 (LO 1) Below is a payroll sheet for Otis Import plc for the month of September 2020. Assume a 10% income tax rate for all employees and an 8% Social Security tax on employee and employer. Income

Name

Earnings to Aug. 31

September Earnings

Income Tax Withholding

Social Security

B.D. Williams 6,800 800 D. Raye 6,500 700 K. Baker 7,600 1,100 F. Lopez 13,600 1,900 A. Daniels 105,000 13,000 B. Kingston 112,000 16,000 Instructions a. Make the necessary entries to record (1) salaries and wages expense and (2) the payment of the payroll. b. Make the entry to record the payroll tax expenses of Otis Import.