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Part 2: Solve the following problems in the space provided or an attached extra page. You may use a calculator or computer, but no
Part 2: Solve the following problems in the space provided or an attached extra page. You may use a calculator or computer, but no cell phones. Total payroll of Watson Co. was $2,300,000, of which $1,200,000 is subject to social security tax. The amount of wages subject to unemployment tax was $400,000. Federal income taxes withheld were $400,000 and state income taxes withheld were $125,000. The state unemployment tax is 1.2%, the federal unemployment tax is 0.8%, and FICA is 7.65%, split as follows - 6.2% (OASDI) and 1.45% (Medicare). Required: 1.) Prepare the journal entry to record the salaries and wages. 2.) Prepare the journal entry to record the employer payroll taxes.
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