Townson Company Had Gross Wages of $180,000 During the Week

Essay

Townson Company had gross wages of $180,000 during the week ended December 10. All earnings are subject to social security tax, while the amount of wages subject to federal and state unemployment taxes was $24,000. Tax rates are as follows: $$\begin{array} { l l } \text { Social security } & 6.0 \% \\\text { Medicare } & 1.5 \% \\\text { State unemployment } & 5.4 \% \\\text { Federal unemployment } & 0.8 \%\end{array}$$ The total amount withheld from employee wages for federal income taxes was $32,000. (a) Journalize the entry to record the payroll for the week of December 10 . If required, round your answers to the nearest cent.
(b) Journalize the entry to record the payroll tax expense incurred for the week of December 10 . If required, round your answers to the nearest cent.