Payroll and Payroll Taxes The payroll of the Rand Company on December 31 of the current year is as follows:
1. Total payroll, $500,000
2. Payroll in excess of $90,000 to each employee, $350,000
3. Payroll in excess of $7,000 to each employee, $400,000
4. Income taxes withheld, $85,000
5. Union dues withheld, $10,000
6. Tax rates: State unemployment tax, 5.4%; F.I.C.A. tax, 8% for both employees and employers; federal unemployment tax, 0.8%; 1% merit-rating reduction of state unemployment tax from normal rate of 5.4%

Required
Prepare the journal entries for Rand’s payroll and payroll taxes.