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Problem 4 Andrew Smith's gross earnings for the month of November were $6,000. His employer, ABC Company, withheld $900 for federal income taxes and $215
Problem 4 Andrew Smith's gross earnings for the month of November were $6,000. His employer, ABC Company, withheld $900 for federal income taxes and $215 for state income taxes. The pay frequency for ABC Company is monthly, with each pay date occurring on the 5th of the next month. Payroll taxes for the month are paid on the 10th of the next month. (When answering the questions below, remember to include all payroll and employer taxes when applicable and use correct payroll tax percentages.) 1. What is the amount that ABC Company will record to its Salary Expense account for Andrew Smith for the month of November? 2. What is Andrew's net pay for the month of November? 3. What is the total amount of employer taxes that ABC Company will have to pay on Andrew's behalf for his November earnings? 4. What is the journal entry needed to record Andrew's earnings at November 30
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