Star Wars Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed.

Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Fisher, Ford, and Cushing. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $97,500 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee€™s wage in excess of $97,500.
Instructions
Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company€™s liability are made separately. Also make the entry to record the monthly payment of accrued payrollliabilities.

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Earnings to July 31 $4,200 3,500 2,700 7,400 8,000 Weekly Pay $180 150 110 250 290 Vacation Pay to Be Received in August Employee Mark Hamill Carrie Fisher Harrison Ford Alec Guinness Peter Cushing $300 220 580