Clarence Henry earns a salary of 70,000 per year. Social security taxes are 6.20 per cent up to 60,600 per cent interest. Assume that interest is not included in the face amount. Prepare the following gen-

LO 2 Payroll Transactions eral journal entries: (1) October 31, recording of note; (2) November 30, accrual of interest expense; (3) December 30, payment of note plus interest. and health taxes are 1.45 per cent. Unemployment insurance taxes are 6.2 per cent of the first 9,000 . During the year, 18,000 was withheld for income taxes, and 1,500 for medical insurance.

1. Prepare a general journal entry summarising the payment of 70,000 to Henry during the year.

2. Prepare a general journal entry summarising the employer payroll taxes and other costs on Henry's salary for the year. Assume the company pays 80 per cent of the total premiums for medical insurance.

3. Determine the total cost paid by Clarence Henry's employer to employ Henry for the year.