Total payroll of Walnut Co. was $2,760,000, of which $480,000 represented amounts
paid in excess of $118,500 to certain employees. The amount paid to employees in
excess of $7,000 was $2,160,000. Income taxes withheld were $675,000. The state
unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F. I.C. A. tax is
7.65% on an employee's salaries and wages to $118,500 and 1.45% in excess of
$118,500.
Instructions

(a) Prepare the journal entry for the salaries and wages paid.
(b) Prepare the entry to record the employer payroll taxes.

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