According to a summary of the payroll of guthrie co., $720,000 was subject to the 6.0% social security tax and the 1.5% medicare tax. also, $60,000 was subject to state and federal unemployment taxes.
required:
a. calculate the employer’s payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.6%.
b. on december 31, journalize the entry to record the accrual of payroll taxes. refer to the chart of accounts for exact wording of account titles