According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 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, 0.8%.
b. Journalize the entry to record the accrual of payroll taxes.

Explanation:

a  

Social Security Tax                  6600   =         110000*6%

Medicare Tax                                    1650    =            110000*1.5%

State Unemployment Tax           1350   =            25000*5.4%

Federal Unemployment Tax           200    =            25000*0.8%

Employer's payroll taxes          9800  

b  

Payroll Tax Expense                   9800  

Social Security Tax Payable                             6600

Medicare Tax Payable                                     1650

State Unemployment Tax Payable             1350

Federal Unemployment Tax Payable             200

To state Unemployment Tax Payable                       1350

answer; i do believe that the correct answer is (d) referrals from

answer; (a) calling people who have not shown interest in the product and asking them to buy it;