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PROBLEM (24 POINTS) 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

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PROBLEM (24 POINTS) 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 rate on payroll up to $7,000 is 1.2%, the federal unemployment tax rate on payroll up to $7,000 is .8%, and the F.l.CA 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

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