The total wage expense for Bow Co. was $183,000. Of this total, $37,000 was above the Social Security wage base limit and not subject to this tax. All earnings are subject to Medicare taxes, and $74,000 was above the federal and state unemployment wage base limits and not subject to unemployment taxes. Please calculate and journalize the total payroll tax expense for Bow Co. given the following rates and wage base limits:
a. FICA tax rate: Social Security, 6.2% with a wage base limit of $142,800; Medicare, 1.45% with no wage base limit.
b. State unemployment tax rate 6.7% with a wage base limit of $7,000.
c. Federal unemployment tax rate 0.6% with a wage base limit of $7,000.