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The following information about the payroll for the week ended March 17 obtained from the records of Butte Mining CO: Salaries:Sales salaries $244,000 Deductions:Warehouse salaries $135,000 Income tax withheld $88,704Office salaries $125,000 U.S Saving bonds $11,088Total $504,000 Group insurance $9,072
Tax rate assumedFICA tax, 7.5% of employee annual earningsState unemployment (employer only), 4.2%Federal unemployment (employer only), 0.8%
1Illustrate the effect on the accounts and financial statement of paying and recording the March 17 payroll Illustrate the effect on the accounts and financial statements of recording the liability for the March 17 payroll taxes.
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The JOhn Company purchased a machine on Nov 1, 2002, for 148,000. At the time of acquistion, the machine was estimated to have a useful life of ten years and an estimated salvage value of $4,000. JOhn has recorded monthly depreciation usiing the s..
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