Concept explainers
Payroll Taxes Payable, Pay Exceeds. Wage Base. Elyctric Company reports a $2,850,000 monthly payroll. Payroll income taxes average 20% for federal and 4% for state and local taxes. The company is also responsible for federal and state
Required
- a. Prepare the journal to record the monthly payroll.
- b. Prepare the
journal entry to pay the liability for accrued salaries. - c. Prepare the journal entry necessary to record Elyctric payroll tax expense for the monthly payroll.
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Intermediate Accounting (2nd Edition)
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