Total payroll of Watson Co. was $920,000, of which $160,000 represented amounts paid in excess of...

 

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Total payroll of Watson Co. was $920,000, of which $160,000 represented amounts paid in excess of $100,000 wage to certain employees. Income taxes withheld were $225,000. The Social Security tax is 8% on an employee's wages up to $100,000. Instructions: Prepare the journal entry for the wages and salaries paid. Total payroll of Watson Co. was $920,000, of which $160,000 represented amounts paid in excess of $100,000 wage to certain employees. Income taxes withheld were $225,000. The Social Security tax is 8% on an employee's wages up to $100,000. Instructions: Prepare the journal entry for the wages and salaries paid.