prepare journal entry to record the payroll tax expense
total earnings $ 200,000
deductions (the only deductiond from the pay are the two listed below)
FICA tax withheld $ 14,300
Ferderal Income tax withheld 50,700
only $65,000 of the wages is subject to the Federal and State unemployment taxes
the Federal unemployment tax is 0.8% (=.008)
the State unemployment tax rate is 3%(=.03)
Required: prepare two separate journal entries
1. compute the net pay; then prepare a journal entry to record the payrolll. The expense account used by this company is Salaries Expense. Use appropriate account titles.
2. prepare a journal entry to record the payroll tax expense.