The following is the monthly payroll for the last three months of the year for Brown’s Sporting Goods Shop, 2 Boat Road, Lynn, Massachusetts 01945. The shop is a sole proprietorship owned and operated by Bill Brown. The employer ID number for Brown’s Sporting Goods is 28-9311893.

The employees at Brown’s are paid once each month on the last day of the month. David Clark is the only employee who has contributed the maximum into Social Security. None of the other employees will reach the Social Security wage-base limit by the end of the year. Assume the rate for Social Security to be 6.2% with a wage-base maximum of $106,800, and the rate for Medicare to be 1.45% on all earnings. Brown’s is classified as a monthly depositor for Form 941 payroll tax deposit purposes.

Your tasks are to do the following:

1. Journalize the entries to record the employer’s payroll tax expense for each period in the general journal.

2. Journalize the payment of each tax liability in the general journal.

3. Complete Form 941 for the fourth quarter of the current year.

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OCTOBER FICA Employee David Clark Jack Johnson Hector Walker Monthly Earnings YTD Earnings OASDI Medicare Federal Income Tax S 3,020 3,560 3,800 $10,380 101,800 $187.24 43.79 220.72 51.62 235.60 55.10 $185,100 $643.56 $150.51 $532.00 431.00 531.00 51,494.00 39,400 43,900 NOVEMBER FICA Employee David Clark Jack Johnson Hector Walker Monthly Earnings YTD Earnings OASDI Medicare Federal Income Tax S 2,950 3,780 3,880 10,610 $104,750 $182.90 42.78 234.36 54.81 240.56 56.26 $195,710 $657.82 $153.85 $596.00 470.00 556.00 $1,622.00 43,180 47,780 DECEMBER FICA Employee David Clark Jack Johnson Hector Walker Monthly Earnings YTD Earnings OASDI Medicare Federal Income Tax S 4,160 3,740 4,460 $12,360 $108,910 127.10 60.32 54.23 64.67 $208,070 635.50 $179.22 $ 870.00 843.00 702.00 $2,055.00 46,920 52,240 231.88 276.52