Joe works 40 hours per week and earns $13 per hour. He has$125 take out for Federal Income Taxes (FIT) and the FICA rate is.0765 (.062 for Social Security and .0145 for Medicare). Noother deductions are taken from him. The employers SUTA rateon the first $7,000 of wages is .06 . The FUTA rate onthe first $7,000 of wages is .008 . Year-to-date wages prior tothis week are $6,800. The work week runs from Monday toFriday and is paid the following Friday. Payroll is recordedon Tuesday for the week prior and Paid on Friday. Answer the following (hint, check out my voice lecture power pointfile on Payroll):
1. What journal entry is needed to record the payroll from the week prior (week ending 05/22, payroll computation happening on Tuesday 05/26).
2. What journal entry is needed torecord the employer payroll taxes from the week ending 05/22.
3. What journal entry is needed on 05/29to pay the payroll to be distributed on 05/29.
4. What journal entry is needed on 05/29to pay the 941 taxes assuming that we pay 941 taxes weekly on Friday.