Southwest Talent Search has an annual payroll of $125,000. In addition, the company incurs payroll tax expense

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Southwest Talent Search has an annual payroll of $125,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Southwest owes salaries of $9,500 and FICA and other payroll tax of $920. The company will pay these amounts early next year. Show what Southwest will report for the foregoing on its income statement for the year and on its year-end balance sheet.

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Financial Accounting

ISBN: 978-0133427530

10th edition

Authors: Walter Harrison, Charles Horngren, William Thomas

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