Donna Grace earns a salary of $8,000 per month during the year. FICA taxes are 8% on the first $100,000 of gross earnings. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the $7,000. During the year, $27,300 was withheld for federal income taxes and $5,700 was withheld for state income taxes.
Instructions
(a) Prepare a journal entry summarizing the payment of Grace's total salary during the year.
(b) Prepare a journal entry summarizing the employer payroll tax expense on Grace's salary for the year.
(c) Determine the cost of employing Grace for the year.

Question

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The Answer of Donna Grace earns a salary of $8,000 per month during the year. FICA taxes are 8% on the first $100,000 of gross earnings. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the $7,000. During the year, $27,300 was withheld for federal income taxes and $5,700 was withheld for state income taxes.
Instructions
(a) Prepare a journal entry summarizing the payment of Grace's total salary during the year.
(b) Prepare a journal entry summarizing the employer payroll tax expense on Grace's salary for the year.
(c) Determine the cost of employing Grace for the year.

Donna Grace Earns a Salary of $8,000 Per Month During