Gross earnings subject to fica taxes total 485000 and gross

Question

For the year ended December 31, 2010, Blasing Electrical Repair Company reports the following summary payroll data.

Blasing Company's payroll taxes are: FICA 8%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to FICA taxes total $485,000, and gross earnings subject to unemployment taxes total $135,000.

Instructions

(a) Prepare a summary journal entry at December 31 for the full year's payroll.

(b) Journalize the adjusting entry at December 31 to record the employer's payroll taxes.

(c) The W-2 Wage and Tax Statement requires the following dollardata.