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John Smith the sole employee of John Smith Kites, has a gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. He is also subject to federal income tax rate of 20%. His year to date pay has already exceeded the $7000 cap for FUTA and SUTA. Prepare the journal entry for the following accounts. Salary, Income Tax, the UASDI, Medicare Tax and Net Pay.

Financial Management, Finance

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