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Part 1

Berry

Company has monthly salaries of

$ 32,000.

Assume

Berry

pays all the standard payroll taxes, no employees have reached the payroll tax limits, total income tax withheld is

$2,000,

and the only payroll deductions are payroll taxes. Journalize the accrual of salaries expense, accrual of employer payroll taxes, and payment of employee and employer payroll taxes for

Berry

Company. (Assume all of the monthly salary is subject to FUTA and SUTA. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

For all payroll calculations, use the following tax rates and round amounts to the nearest cent:

Employee:	OASDI: 6.2% on first $132,900 earned; Medicare: 11.45% up to $200,000, 2.35% on earnings above $200,000.
Employer:	OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.