Bailey Dry Cleaners has six employees who were paid the following wages during 2019: Frank Johnson $30,000 Bill Long 16,000 Duff Morse 130,000 Laura Stewart 30,000 Cindy Sharpe 27,000 Melissa Ledbetter 22,000 Total $255,000 The state allows the company a 1% unemployment compensation merit-rating reduction from the normal rate of 5.4%. The federal unemployment rate is 0.6%. The maximum unemployment wages per employee are $7,000 for both the state and the federal government. Income tax withholdings of 20% are applied to all employees. A F.I.C.A. tax rate of 8% on the employee and 8% on the employer is applied to the first $117,000 of each employee's wages. Required: 1. Calculate the amount of payroll taxes to be paid by Bailey. 2. Prepare the journal entries to record the payment of payroll and the payroll tax expense.