The Payroll Records of a Company Provided the Following Data

question 37

Essay

The payroll records of a company provided the following data for the weekly pay period ended December 7: The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee.The federal and state unemployment tax rates are 0.8% and 5.4%,respectively,on the first $7,000 paid to each employee.Prepare the journal entries to (a)accrue the payroll and (b)record payroll taxes expense.

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Definitions:

Probabilities

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 1 indicates certainty.

Escalation of Commitment

Escalation of commitment refers to the phenomenon where individuals or groups continue to invest in a decision or project despite evidence of its ineffectiveness or failure, often due to cognitive biases.

Avoiding Trap

A decision-making error where individuals choose to evade or postpone decisions to avoid conflict or mistakes.

Determine Right Course of Action

The process of making decisions that align with one’s ethics, goals, and the available information to achieve the best outcome.