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Hair Affairs Reports the Following Payroll Information for May, 2010

Question 84

Essay

Hair Affairs reports the following payroll information for May, 2010:
 Type of  Gross  Federal Income  Savings Bonds  Salary  Pay  Tax Withheld  Withheld  Sales $10,000$2,200$200 Office 3,000600300$13,000$2,800$500\begin{array}{llll}\text { Type of } & \text { Gross } & \text { Federal Income } & \text { Savings Bonds } \\\text { Salary } & \text { Pay } & \text { Tax Withheld } & \text { Withheld }\\ \text { Sales } & \$ 10,000 &\$ 2,200 & \$ 200 \\\text { Office } & 3,000&600 & 300\\&\$13,000&\$2,800&\$500\end{array} Tax rate information follows:
 FICA 7.0%Federal unemployment 0.8%State employment 5.4%\begin{array}{llr} \text { FICA } &7.0\%\\ \text {Federal unemployment } &0.8\%\\ \text {State employment } &5.4\%\end{array}
Assume that all wages are subject to all payroll taxes.
Required:
Prepare the journal entries to record the payment of the May, 2010, payroll and the payroll taxes imposed on the employer.

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