The payroll summary for December 31 for Waters Co. revealed total earnings of $80,000 (of which $3,000 are subject to unemployment tax). All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%. The state unemployment compensation tax rate is 4.3% and the federal unemployment compensation tax rate is 0.8%.

Journalize the entry to record the accrual of employer payroll taxes on December 31. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

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