Please use the word document provided, and not an excel sheet.

Name: Homework Week 7 Payroll (1) In November, gross earnings at the Humpty Dumpty Riding Company were $100,000. All earnings are subject to 7.65% FICA taxes. Federal income tax withheld was $20,000, and State income tax withheld was $1,600. (1) Calculate net pay for November and, (2) journalize the payroll. (2) In March, the payroll supervisor determines that gross earnings for Horseless Carriage Rides are $120,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemployment taxes and, .8% Federal unemployment taxes. Journalize the employers payroll taxes. Date Account Debit Credit (3) The employee payroll records indicate the following total earnings for 2 employees through the pay period ending December 10. Jim Smith $93,500 Lonnie Marshall $108,100 For the pay period ending December 31, 2015, each employees' gross earnings are $4,500. The FICA tax rate is 7.65% on earnings up to $110,100. In other words, any income above $110,100 is not subject to FICA tax. Though we are not concerned with Medicare in this problem, Medicare is 1.45% of earnings with no limit. Calculate the FICA withholdings that should be made for each employee for for the pay period ending December 31. NOTE: For your information, I didn't bring up the fact that Social Security Tax is really 6.2% with the limit and Medicare is an additional 1.45% for a total of 7.65%. Medicare has no income limit