Problem 3 (8 points)

You have been asked to prepare the entry to record the payroll on Feb 15. 20X1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 for sales salaries. The federal income tax rate is 28%, the state income tax rate is 4.6%, and the FICA rate is 7.65% for all employees. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees contribution to a health insurance plan.

Required:

1. Prepare the necessary journal entry to record the payroll of Hotel Properties, Inc., on Feb 15, 20X1.
2. Prepare the journal entry that would be made on the date the payroll was actually paid.