Total payroll of a company was $2,820,000, of which $510,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $2,160,000. Income taxes withheld were $675,000. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F.I.C.A. tax is 7.65% on an employees salaries and wages to $128,400 and 1.45% in excess of $128,400.

Instructions

(2a) Prepare the journal entry for the salaries and wages paid.)

(2b) Prepare the entry to record the employer payroll taxes.