Problem 10.4A (Algo) Computing gross earnings, determinlng deductlons and net amount due, Journallzing payroll transactlons. LO 10-2, 10-3, 10.4, 10-5, 10-6, 10.7 MSquared pays Its employees monthly. Payments made by the company on October 31 follow. Cumulatlve amounts for the year pald to the persons prior to the October 31 payroll are also given. 1. Torl Parker, president, gross monthly salary of $20,200; gross earnings prior to October 31,$171,500. 2 Carolyn Catz, vice president, gross monthly salary of $16,400; gross earnings pald prior to October 31, \$152,500. 3. Michelle Clark, Independent accountant who audits the company's accounts and performs consulting services, $16,300; gross amounts pald prior to October 31,$44,700. 4. Will Wu, treasurer, gross monthly salary of $5,800; gross earnings prior to October 31,$52,600. 5. Payment to Review Services for monthly services of Tom Bradley, an editorlal expert, $5,800; amount pald to Review Services prlor to October 31,$33,900. Required: 1. Use an earnings celling of $142,800 for soclal securlty taxes and a tax rate of 6.2 percent and a tax rate of 1.45 percent on all earnings for Medicare taxes. Prepare a schedule showing the following information: a. Each employee's cumulative earnings prior to October 31 . b. Each employee's gross earnings for October. c. The amounts to be withheld for each payroll tax from each employee's earnings; the employee's income tax withholdings are Parker, $5,296; Catz, \$4,612- Wu, \$1,331. d. The net amount due each employee. e. The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees. 2. Prepare the general journal entry to record the company's payroll on October 31. 3. Prepare the general journal entry to record payments to employees on October 31. Complete this question by entering your answers in the tabs below. Use an earnings ceiling of $142,800 for social security taxes and a tax rate of 6.2 percent and a tax rate of 1.45 percent on all earnings for Medicare taxes. Prepare a schedule showing the following information: Note: Round your answers to 2 decimal places. Prepare the general journal entries to record the company's payroll expenses and also payments to employees on October 31,201. Note: Round your answers to 2 decimal places. Journal entry worksheet Record the company's payroll to be paid at a later date. Nate: Enter debits before credits. Prepare the general journal entries to record the company's payroll expenses and also payments to employees on October 31,201. Note: Round your answers to 2 decimal places. Journal entry worksheet Record the entry to summarize payment of the payroll. Note: Enter debits before credits