For the second week (5 day workweek) in October 2020, Lily Company's records show

direct labor, P180,000 for 60 workers; indirect factory labor, P30,000 (10 workers);

sales salaries, P42,000(14 employees); and administrative office salaries, P15,000 (5

employees). The workers' daily wage is P600.

Required:

(1) Prepare the entry to record the payroll liability.

(2) Prepare the entry to distribute payroll cost.

(3) Prepare the entry to record the employer's payroll taxes in one compound entry.

Deductions & Contributions

Employee

Employer

Withholding Tax

20%

SSS contributions

3.5%

7.5%

Philhealth contribution

1.375%

1.375%

HDMF

P100

P100

EC Contribution

P 10