PAYROLL ACCOUNTING
McLaughlin Manufacturing has the following data available for its March 31, 2009, payroll:
Wages earned $366,000*
Federal income tax withheld 91,800
State income tax withheld 8,600
* All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively.
Federal unemployment tax at 3.2 percent is payable on wages of $7,000, and state unemployment tax at 3.0 percent is payable on the same amount of wages.
Required:
Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes.