The payroll of Higley Company for December 2019 is as follows: Total payroll was $900,000, of which $360,000 represents amounts paid in excess of $118,500 to certain employees. Income taxes in the amount of $140,000 were withheld, as was $26,000 for employee dependent insurance and $4,000 for union dues. Assume that the FICA tax is 7.65% on an employees wages to $118,500 and 1.45% in excess of $118,500. The amount paid to employees in excess of $7,000 was $780,000. State and Federal Unemployment Taxes are only paid on the first $7,000 paid to individual employees. The State Unemployment Tax rate is 3.6%, but Higley Company is allowed a credit of 1.4% by the state for its unemployment experience. The Federal Unemployment Tax rate is .9% after state credit.

Instructions:

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.