For the year ended December 31, 2010, L. Ullman Company reports the following summary payroll data.

1. Ullman Company’s payroll taxes are: FICA 8%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to FICA taxes total $370,000, and gross earnings subject to unemployment taxes total $90,000.

Instructions

(a) Prepare a summary journal entry at December 31 for the full year’s payroll.

(b) Journalize the adjusting entry at December 31 to record the employer’s payroll taxes.

(c) The W-2 Wage and Tax Statement requires the dollar data shown below.

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Gross earnings: Deductions: FICA taxes Federal income taxes withheld State income taxes withheld (3%) United Fund contributions payable Hospital insurance premiums Total Administrative salaries Electricians' wages $150,000 $ 29,600 11,700 Total $390,000 17,000 12,000 $148,300