PAYROLL ACCOUNTING

McLaughlin Manufacturing has the following data available for its March 31, 2009, payroll:

Wages earned                               $366,000*

Federal income tax withheld            91,800

State income tax withheld              8,600

* All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively.

Federal unemployment tax at 3.2 percent is payable on wages of $7,000, and state unemployment tax at 3.0 percent is payable on the same amount of wages.

Required:

Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes.