Acc121 Survey of Accounting: P8-2 The following information about the payroll - Greenfield Co

Acc121 Survey of Accounting

P8-2 Recording payroll and payroll taxes
The following information about the payroll for the week ended January 31 was obtained from the records of Greenfield Co:
Salaries:
Sales salaries 320,000
Warehouse salaries 84,500
Office Salaries 155,500
$560,000

Deductions:
Income tax withheld 109,760
U.S. savings bonds 16,400
Group insurance 24,690

Tax rates assumed:
FICA tax, 7.5% of employee annual earnings
State unemployment (employer only), 4.2%
Federal unemployment (employer only), 0.8%

Instructions:
1. For the January 31 payroll, determine the employee FICA tax payable.
2. Illustrate the effect on the accounts and financial statements of paying and recording the January 31, payroll.
3. Determine the following amounts for the employer payroll taxes related to the January 31 payroll:
a) FICA tax payable
b) state unemployment tax payable
c) federal unemployment tax payable
4. Illustrate the effect on the accounts and financial statements of recording the liability for the January 31 payroll taxes.
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