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Recording Payroll and Payrall Taxes The following information about the payroll for the week ended October 4 was obtained from the records of Simkins Mining
Recording Payroll and Payrall Taxes The following information about the payroll for the week ended October 4 was obtained from the records of Simkins Mining Co. Salaries Sales salaries Employee Wages Office salaries 530,000 ncme tax withheld $17,000 2,000 6,000 40,000 US savings bonds 20,000 Group insurance $90,000 Tax rates assumed FICA tax, 7.5% of employee annual earnings State unemployment (employer only),4.2% Federal unemployment (employer only), 0.8% 1. For the October 4 payrell, determine the employee FICA tax payable. 2. Illustrate the effect on the accounts and financial statements of recording the October 4 payroll. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts Dalance Sheet Stockholders Assets Liabilities Cash Flovs Fquity October 4 Statement of Cash Flows Income Statement
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