Question

Below is a payroll sheet for Otis Import Company for the month of September 2017. The
company is allowed a		5.40%	unemployment compensation rate by the state; the federal unemployment
tax rate is	0.60%	and the maximum for both is		$9,000	. Assume a	12%	federal
income tax rate for all employees and a			7.65%	FICA tax on employee and employer on a maximum of
$118,500	. In addition,	1.45%	is charged both employer and employee for an employee’s wages in excess
of	$118,500	per employee.
Name	Earnings to Aug 31	September Earnings	Income Tax Withholding	F.I.C.A.	State U.C.	Federal U.C.
B.D. Williams	$8,600	$900
D. Raye	8,100	750
K. Baker	9,800	1,200
F. Lopez	13,600	1,800
A. Daniels	109,000	12,600
B. Kingston	113,000	18,000

Instructions:
(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll (b) Make the entry to record the payroll tax expenses of Otis Import Company. (c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.