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The payroll records of a company provided the following data for the weekly pay period ended December 7: Employee Earnings to End of Previous Week
The payroll records of a company provided the following data for the weekly pay period ended December 7:
Employee | Earnings to End of Previous Week | Gross Pay | Federal Income Taxes | Medical Insurance Deduction |
---|---|---|---|---|
Ronald Arthur | $ 54,000 | $ 1,200 | $ 216 | $ 155 |
John Baines | 40,500 | 900 | 162 | 170 |
Ted Carter | 45,000 | 1,000 | 180 | 170 |
The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this weeks wages paid to each employee. The federal and state unemployment tax rates are 0.6% and 5.4%, respectively, on the first $7,000 paid to each employee. Prepare the journal entries to (a) accrue the payroll and (b) record payroll taxes expense.
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