Problem: Other accrued liabilities-payroll. The following summary data for the payroll period ended on November 14, 2003, are available for Brac Construction, Ltd.:
Gross pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ?
FICA tax withholdings . . . . . . . . . . . . . . . . . . . . . . ?
Income tax withholdings . . . . . . . . . . . . . . . . . . . . 13,760
Medical insurance contributions . . . . . . . . . . . . . . 1,120
Union dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 640
Total deductions . . . . . . . . . . . . . . . . . . . . . . . . . . 21,640
Net Pay 58,360
Required:
a. Calculate the missing amounts and then determine the FICA tax withholding percentage.
b. Use the horizontal model (or write the journal entry) to show the effects of the payroll accrual.