ACCOUNTING-Payroll accounting. Assume that the following tax rates

QUESTION

1. Payroll accounting. Assume that the following tax rates and payroll information pertain to Brookhaven Publishing:Social Security taxes: 4% on the first $55,000 earned per employeeMedicare taxes: 1.5% on the first $130,000 earned per employeeFederal income taxes withheld from wages: $7,500State income taxes: 4% of gross earningsInsurance withholdings: 1% of gross earningsState unemployment taxes: 5.4% on the first $7,000 earned per employeeFederal unemployment taxes: 0.8% on the first $7,000 earned per employeeThe company incurred a salary expense of $50,000 during February. All employees had earned less than $5,000 by month-end and no wages have been paid during the month.a. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deductions for the following:Social Security taxesMedicare taxesFederal income taxes withheldState income taxesInsurance withholdingsb. Prepare the journal entry to record Brookhaven’s payroll tax expense. The entry will include the following:Matching Social Security taxesMatching Medicare taxesState unemployment taxesFederal unemployment taxes

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