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The payroll register of Patel Heritage Co indicates $2,922 of social security withheld and $730.50 of Medicare tax withheld on total salaries of $48,700 for the period. Earnings of $13,600 are subject to state and federal unemployment compensation taxes at the federal rate of 0.8% and the state rate of 5.4%.
Problem 1: How do provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. Round to two decimal places.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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