Pgina 2 ACCT 8062 Problem 2 Total payroll of Watson Co. was $920,000, of which $160,000 represented amounts paid in excess of $100,000 to certain employees. The amount paid to employees in excess of $7,000 was $720,000. Income taxes withheld were $225,000. The state unemployment tax is 1.2%, the federal unemployment tax is 8%, and the F.I.C.A. tax is 7.65% on an employee's wages to $100,000 and 1.45% in excess of $100,000. Instructions (a) Prepare the journal entry for the wages and salaries paid. (b) Prepare the entry to record the employer payroll taxes