The payroll records of a company provided the following data for the weekly pay period...
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Accounting
The payroll records of a company provided the following data for the weekly pay period ended December 7:
Employee
Earnings to End of Previous Week
Gross Pay
Federal Income Taxes
Medical Insurance Deduction
Union Dues
United Way
Ronald Arthur
$ 54,000
$1,200
$216
$125
$15
$15
John Baines
40,500
900
162
125
15
30
Ted Carter
45,000
1,000
180
150
-0-
20
The FICA Social Security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee.
1. Calculate the take home pay for each employee for the week ended December 7th.
2. Prepare the journal entry to record the employee payroll expenses and liabilities.
3. Prepare the journal entry to record the employer payroll taxes expense.
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