Problem 3-8 Payroll Work Sheet and Journal Entries Note: For this problem, use the following tax rates: FICA-Employer and employee, 8% of the first $120,000 of earnings per employee per calendar year State unemployment-4% of the first $8,000 of earnings per employee per calendar year. Federal unemployment-1% of the first $8,000 of earnings per employee per calendar year. Federal income tax withholding 10% of each employee's gross earnings, unless otherwise stated. The payroll records of Graham Computer Co. for the week ending October 7, the 40th week in the year, show the following: Salary or Wage per 40-Hour Week Hours Worked Employee Allen Devine Income Withheld $488 402 Gross Earnings through 39th Week $123.560 119.500 $2.489 2.238 Fiorelli 700 180 27,300 Classification President Vice President- Administration Supervisor Production Factory-Direct Factory-Direct Factory-Direct Factory-Direct Factory-Indirect Factory-Indirect 150 500 400 160 O'Clock O'Reilly Pawlukiewicz Surdick Trebbi Webb 400 110 120 19.820 17,200 16.600 15,200 7.800 2.000 380 300 60 300 The company pays time-and-a-half for overtime for all employees below the supervisory level. Round all final answers to the nearest cent and be sure to enter "0", if required. Employee Income FICA 89 Withheld Earning 499 402 180 Regular Premium 2489 2238 700 000 460 30 440 9.5 315 7.5 315 7.5 Allen Devine Fiorelli O'clock O'Reily Pawlukiewicz Surdick Trebbi Webb Total Earn FICA Throu 40th Taxable Week earnings 126049 2238 121738 200 28000 700 OSO 20470 050 490 17690 490 460 17060 408.5 15608.5 408.5 322.5 8122.5 322.5 322.5 6922.5 322.5 150 290.6 160 110 20 120 313.2 255.82 216.7 80 60 Total 7956 124.5 8080. S 361660.5 3853.5| 308.281750 6022.22 Debit Credit a. GENERAL JOURNAL Account Title | Payroll FICA Tax Payable Employees Income Tax Payable Wages Payable b. 1 Wages Payable 1 c. Work in Process Factory Overhead Administrative Salaries Payroll d. Factory Overhead Payroll Taxes Expense - Administrative Salarie FICA Tax Payable SUTA Tax Payable FUTA Tax Payable