During the month of February, Western Corporation’s employees earned wages of $74,000. Withholdings related to these wages were $4,200 for Social Security (FICA), $7,300 for federal income tax, and $1,800 for state income tax. Costs incurred for unemployment taxes were $110 for federal and $160 for state.
Prepare the February 28 journal entries for
(a) Wages expense and wages payable assuming that all February wages will be paid in March and
(b) The company’s payroll tax expense.