Essay
Excel Products Inc. pays its employees semimonthly. The summary of the payroll for December 31, indicated the following:
Salary expense
$120,000
Federal income tax withheld
20,000
Payroll is subject to social security tax of 6% and Medicare tax of 1.5%, with no maximum earnings; $10,000 is subject to state unemployment tax of 5.4% and federal unemployment tax of 0.8%. Prepare the journal entries for payroll tax expense if the employees are paid on December 31 of the current year.
Correct Answer:
Verified
Correct Answer:
Verified
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