Prepare the journal entry for the wages and salaries paid

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Problem - Total payroll of Watson Co. was $920,000, of which $160,000 represented amounts paid in excess of $100,000 to certain employees. The amount paid to employees in excess of $7,000 was $720,000. Income taxes withheld were $225, 000. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F. I. C.A. tax is 7. 65% on an employee's wages to $100, 000 and 1. 45% in excess of $100, 000.

Instructions -

(a) Prepare the journal entry for the wages and salaries paid.

(b) Prepare the entry to record the employer payroll taxes.

Reference no: EM132482704

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