Below is a payroll sheet for Otis Import Company for the month of September 2015. Assume a 10% income tax rate for all employees and an 8% Social Security tax on employee and employer.

Instructions

(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.

(b) Make the entry to record the payroll tax expenses of Otis Import Company.

(c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.

Transcribed Image Text:

Income Name B.D. Williams D. Raye K. Baker Earnings to Aug. 31 6,800 September Earnings Tax Withholding Social Security 800 6,500 700 7,600 1,100 F. Lopez 13,600 1,900 A. Daniels 105,000 13,000 B. Kingston 112,000 16,000