The following summary data for the payroll period ended December 27, 2009, are available for Cayman Coating Co.:

Gross pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,000

FICA tax withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?

Income tax withholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,680

Group hospitalization insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 960

Employee contributions to pension plan . . . . . . . . . . . . . . . . . . . . . . . ?

Total deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,088

Net pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?

Additional information

• FICA tax rates for 2009 were 7.65% on the first $106,800 of each employee’s annual earnings and 1.45% on any earnings in excess of $106,800. However, no employees had accumulated earnings for the year in excess of the $106,800 limit. The FICA tax rates are levied against both employers and employees.

• The federal and state unemployment compensation tax rates are 0.8% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee’s annual earnings. Only $7,500 of the gross pay amount for the December 27, 2009, pay period was owed to employees who were still under the annual limit.

Required:

Assuming that Cayman Coating Co.’s payroll for the last week of the year is to be paid on January 3, 2010, use the horizontal model (or write the journal entry) to record the effects of the December 27, 2009, entries for

a. Accrued payroll.

b. Accrued payroll taxes.