Champaign Inc., a company that provides educational consulting services to large universities across the nation, has a gross payroll of $25,000 for the pay period. The entire payroll is subject to Social Security and Medicare taxes. Champaign must also withhold $2,400 in federal income tax from the employees and pay state unemployment tax of $75. Assume the entire payroll is eligible for Social Security and Medicare at standard rates.
Required:
Provide the necessary journal entries for Champaign to record these payroll taxes (round to nearest penny).