The following information about the payroll for the week ended March 17 was obtained from the records of Butte Mining Co.:

Instructions1. For the March 17 payroll, determine the employee FICA tax payable.2. Illustrate the effect on the accounts and financial statements of paying and recording the March 17 payroll.3. Determine the following amounts for the employer payroll taxes related to the March 17 payroll: (a) FICA tax payable, (b) state unemployment tax payable, and (c) federal unemployment tax payable.4. Illustrate the effect on the accounts and financial statements of recording the liability for the March 17 payroll taxes.

Deductions: Income tax withheld U.S. savings bonds Group insurance Salaries: Sales salaries Warehouse salaries Office salaries $88,704 11,088 9,072 $244,000 125,000 $504,000 Tax rates assumed: FICA tax, 7.5% of employee annual earnings State unemployment (employer only), 4.2% Federal unemployment (employer only), 0.8%