Total Payroll of Thames Co. was $690,000, of which $120,000 represented amounts paid in excess of $84,900 to certain employees. The amount paid to employees in excess of $7,000 was $540,000. Income tax is .8%, and the F.I.C.A. tax is 7.65% on an employee's wages to $84,900 and 1.45% in excess of $84,900. Prepare the journal entry for the wages and salaries paid. Prepare the entry to record the employer payroll taxes

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