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Sunland Company's payroll for December 2017 is summarized below. Amount Subject to Unemployment Taxes Payroll Wages Due Federal State Headquarters $132,000 $17,000 $4,000 Sales Office #1 36.000 4,000 1,000 Sales Office #2 30,000 2.000 1,000 Total $198.000 $23,000 $6,000 The state unemployment tax rate is 5.5%. However, Sunland receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee's wages to $87,500 and 1.45% in excess of $87,500. Of the $198,000 wages potentially subject to FICA tax, the following amounts are in excess of $87,500. Headquarters $13,000 Sales Office #1 15,000 Sales Office #2 12.000 The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $15,000 for headquarters, $5,000 for sales office #1. and $4,800 for sales office #2. Prepare a schedule showing the employer's total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.) Total Headquarters Sales Office #1 Sales Office Wages $ $ $ $ FICA Federal U.T. State U.T. Total Cost $ $ $ $ e Textbook and Media List of Accounts Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Headquarters Payroll: (To record salaries and wages expense) (To record payroll tax expense) Sales Office #1 Payroll: (To record salaries and wages expense) (To record payroll tax expense) Sales Office #2 Payroll: (To record salaries and wages expense) (To record payroll tax expense)

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