The following payroll journal entries for Oct. 15 were made by your predecessor. For FICA tax, assume that the social security rate is 6.0% and the Medicare rate is 1.5%. The state and federal unemployment tax rates are 5.4% and 0.8%, respectively. The company offers 401k plans to employees. Review the journal entries, then answer the questions that follow.

PAGE 32

GENERAL JOURNAL

ACCOUNTING EQUATION

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Oct. 15	Salaries Expense		647,800.00				?
2		Wages Expense		172,200.00				?
3		Social Security Tax Payable			49,200.00		?
4		Medicare Tax Payable			12,300.00		?
5		Employees Federal Income Tax Payable			147,600.00		?
6		Medical Insurance Payable			90,200.00		?
7		Retirement Contributions Payable			123,000.00		?
8		Salaries Payable			397,700.00		?
9	15	Payroll Tax Expense		62,864.00				?
10		Social Security Tax Payable			49,200.00		?
11		Medicare Tax Payable			12,300.00		?
12		Federal Unemployment Tax Payable			176.00		?
13		State Unemployment Tax Payable			1,188.00		?

In order to confirm the previous clerks payroll calculations, you have been asked to supply the following amounts based on your review of the payroll entries. These amounts will be checked against the company records and investigated further if necessary.

1. Determine the payroll amount subject to federal and state unemployment taxes in this payroll.

Points:

0 / 1

2. What is the total payroll for Copperfield and Company shown in these journal entries?

Points:

0 / 1

3. What is Copperfield and Companys share of FICA taxes in this payroll?