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Item 5

Spirit Corporation reported the following payroll-related costs for the month of February.

Gross pay (wages expense)	$	271,000
Social Security and Medicare taxes		20,732
Federal and state unemployment taxes		15,500
Workers compensation insurance		8,200
Group health and life insurance benefits		11,000
Employee pension plan benefits		27,850
Total payroll costs for February	$	354,282

Spirits insurance premiums for workers compensation and group health and life insurance were paid for in a prior period and recorded initially as prepaid insurance expense. Withholdings from employee wages in February were as follows.

State income tax withholdings	$	5,875
Federal income tax withholdings		56,000
Social Security and Medicare tax withholdings		20,732

a-c. Record Spirits payroll entries for the month of February.

d. Do the amounts withheld from Spirits employees represent taxes levied on Spirit Corporation?