Question: Gross pay for the employees of Mr. Scott Corporation for February 28, 2008 is as follows:
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Sales Salaries
|
$338,000
|
|
Office Salaries
|
148,000
|
|
Maintenance Salaries
|
95,000
|
|
Total Salaries
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$581,000
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Data on withholding & payroll taxes is shown below:
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1.
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Federal Income tax withheld
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$72,625
|
|
2.
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Stale income tax withheld
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17,100
|
|
3.
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Health insurance withheld
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8,200
|
|
4.
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Pension contributions withheld
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25,125
|
|
5.
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FICA rate is 7.7%
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|
|
6.
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SUTA tax is $98,000 and FUTA taxes are $2,215
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|
Required:
[A] Prepare journal entry to record the February payroll
[B] Record the journal entry for the employer's payroll taxes
[C] Prepare journal entry to record the employer's monthly payment of payroll tax liabilities