The total payroll of Page Corporation was $4,320,000, of which $680,000 represented amounts paid in excess...

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The total payroll of Page Corporation was $4,320,000, of which $680,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $3,790,000. Federal income taxes withheld were $975,000. 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 $128,400 and 1.45% in excess of $128,400. Required (a) Prepare the journal entry to record the payment of the payroll (Note: only the net pay is paid out at the payroll date, all other amounts are accrued in separate accounts). You must show the detail of all your calculations or you will receive 50% credit. The journal entry description is not required. (b) Prepare the journal entry to record the accrual of payroll tax expense of Garrison Corporation. You must show the detail of all your calculations or you will receive 50% credit. The journal entry description is not required. 4 The total payroll of Page Corporation was $4,320,000, of which $680,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $3,790,000. Federal income taxes withheld were $975,000. 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 $128,400 and 1.45% in excess of $128,400. Required (a) Prepare the journal entry to record the payment of the payroll (Note: only the net pay is paid out at the payroll date, all other amounts are accrued in separate accounts). You must show the detail of all your calculations or you will receive 50% credit. The journal entry description is not required. (b) Prepare the journal entry to record the accrual of payroll tax expense of Garrison Corporation. You must show the detail of all your calculations or you will receive 50% credit. The journal entry description is not required. 4

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