Problem $10\mathrm{.}4$A $($Algo$)$ Computing gross earnings, determining deductions and net amount due, journalizing payroll transactions. LO $10-2,10-3,10-4,10-5,10-6,10-7$

MSquared pays its employees monthly. Payments made by the company on October $31$ follow. Cumulative amounts for the year paid to the persons prior to the October $31$ payroll are also given.

Tori Parker, president, gross monthly salary of $$18,900$; gross earnings prior to October $31,$$$170,200.$

Carolyn Catz, vice president, gross monthly salary of $$15,100$; gross earnings paid prior to October $31,$$$151,200.$

Michelle Clark, independent accountant who audits the company's accounts and performs consulting services, $$15,000$; gross amounts paid prior to October $31,$$$43,400.$

Will Wu$,$ treasurer, gross monthly salary of $$4,500$; gross earnings prior to October $31,$$$51,300.$

Payment to Review Services for monthly services of Tom Bradley, an editorial expert, $$4,500$; amount paid to Review Services prior to October. $31,$$$32,600.$

Required:

Use an earnings ceiling of $$142,800$ for social security taxes and a tax rate of $6\mathrm{.}2$ percent and a tax rate of $1\mathrm{.}45$ percent on all earnings for Medicare taxes. Prepare a schedule showing the following information:

a$.$ Each employee's cumulative earnings prior to October $31.$

b$.$ Each employee's gross earnings for October.

c$.$ The amounts to be withheld for each payroll tax from each employee's earnings; the employee's income tax withholdings are Parker, $$4,956$; Catz, $$4,247$ Wu$,$ $$1,033.$

d$.$ The net amount due each employee.

e$.$ The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees.

Prepare the general journal entry to record the company's payroll on October $31.$

Prepare the general journal entry to record payments to employees on October $31.$

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ and $3$

Use an earnings ceiling of $$142,800$ for social security taxes and a tax rate of $6\mathrm{.}2$ percent and a tax rate of $1\mathrm{.}45$ percent on all earnings for Medicare taxes. Prepare a schedule showing the following information:

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[$Employee Name,$\backslash$table$[[$Cumulative$],[$earnings$]],$Monthly pay,$\backslash$table$[[$Social$],[$security$]],$Medicare,$\backslash$table$[[$Employee$],[$income tax$],[$withholding$]],$Net pay$],[$Tori Parker,$$170,200\mathrm{.}00,$$$18,900\mathrm{.}00,,,,],[$Carolyn Catz,$151,200\mathrm{.}00,15,100\mathrm{.}00,,,,],[$Michelle Clark,$43,400\mathrm{.}00,15,000\mathrm{.}00,,,,],[$Will Wu$,51,300\mathrm{.}00,4,500\mathrm{.}00,,,,]]$