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A local fast food restaurant hires teenagers to take orders and make and serve food....

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Accounting

A local fast food restaurant hires teenagers to take orders and make and serve food. The wages earned by employees for August total $86000. The Social Security tax rate is 6.2%, the Medicare tax rate is 1.45%, and the employer's federal and state unemployment tax rates are 0.6% and 5.1% respectively. The federal and state income tax withheld for the period totaled maximum wage base, but some employees are are over the $7000 annual unemployment tax wage base, so only $69000 of the August wages is subject to unemployment taxes. Because of the difficulty hiring after Covid, the employer has offered to match employee contributions to employer-sponsored retirement accounts; the total withheld from employees' pay for retirement savings in August is $2800. Make the journal entry to show the gross wages, the employee withholdings (not yet paid), and the net pay to employees (not yet paid) for August. You do not need to make entries for the employers payroll taxes or the employer's fringe benefits.

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