Seaside Service Co. pays salaries monthly on the last day of the month. The following information is available from Seaside for the month ended December 31, 2010.

Assume the Social Security tax rate is 6 percent on the first \(\$ 110,000\) of salaries. Kirk reached the \(\$ 110,000\) amount in September. His salary in December amounted to \(\$ 12,000\) and is included in the \(\$ 92,000\). No one else will reach the \(\$ 110,000\) amount for the year. None of the employee salaries are subject to unemployment tax in December.
Other amounts withheld from salaries in December were as follows:

Required

a. Prepare the journal entry to record the payment of payroll on December 31, 2010.

b. Prepare the journal entry to record the payroll tax expense for Seaside Service Co. for December 2010.

Transcribed Image Text:

Administrative salaries $92,000 Sales salaries 66,000 Office salaries 45,000