ALT-TWO-PAYROLL-ENTRIESUsing the data below, make the entry for the Employees' payrollI ANDthe employer's Payroll Taxes.Carnaby Company has five employees. The total salaries of the employees is $12,400.The company prepares the payroll entry, using a social security rate of 6%,and a Medicare rate of 1.5%. The Federal income tax withholding is given as $3,200.Prepare the entry for the employees' payroll.Salaries ExpenseSocial Security Tax PayableMedicare Tax PayableEmployee Federal Income Tax PayableWages PayableSHOW FINAL BALANCES OF THESE ACCOUNTS AFTER BOTH ENTRIESCarnaby also makes the entry to accrue the payroll taxes. The company matchesHAVE BEEN MADE. USE GREEN CELL FOR FINAL BALANCE.the social security and Medicare amounts, and computes State Unemploymentat the rate of 5.4% of salaries earned. The Federal Unemployment rate is.8%.SOCIAL SEC. TAX PAYABLEPrepare the entry for the employer's payroll taxes.Payroll Tax ExpenseSocial Security Tax PayableMedicare Tax PayableMEDICARE TAX PAYABLEState Unemployment Tax PayableFederal Unemployment Tax Payable

Given: Salary expense = $12,400

Answered: Salaries Expense Social Security Tax…

Business

Accounting

Salaries Expense Social Security Tax Payable Medicare Tax Payable Employee Federal Income Tax Payable Wages Payable

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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