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Tree Top Company's Anna and Zander Wallace are continuing their analysis of the company's position and believe the company will need to borrow $ 1
Tree Top Company's Anna and Zander Wallace are continuing their analysis of the company's position and believe the company will need to borrow $ in order to expand operations. They consult Woodland Bank and secure a oneyear note on September with interest due at maturity. Additionally, the company hires an employee, Jim Varny, on September Jim will receive a salary of $ per month. Payroll deductions include federal income tax at OASDI at Medicare at and monthly health insurance premium of $ The company will incur matching FICA taxes, FUTA tax at and SUTA tax at Round calculations to two decimals. Omit explanations on journal entries.
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Requirement Record the employee payroll and employer payroll tax entries on September Round all calculations to two decimal places. Record debits first, then credits. Exclude explanations from any journal entries.
Start by preparing the compound journal entry to record salaries expense and payroll withholdings on September Do not record the employer payroll tax with this entry. We will do that in the following step.
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