According to a summary of the payroll of Scotland Company, salaries for the period were $400,000. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (5.4%) and federal (0.8%) unemployment taxes. All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%. Journalize the entry to record the accrual of payroll. If required, round your answers to the nearest (a) cent. Journalize the entry to record the accrual of payroll taxes. If required, round your answers to the (b) nearest cent.

According to a summary of the payroll of Scotland Company, salaries for the period were $400,000. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (5.4%) and federal (0.8%) unemployment taxes. All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%. Journalize the entry to record the accrual of payroll. If required, round your answers to the nearest (a) cent. Journalize the entry to record the accrual of payroll taxes. If required, round your answers to the (b) nearest cent.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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