The Following Data Were Provided by the Detailed Payroll Records

question 71

Essay

The following data were provided by the detailed payroll records of Mountain Corporation for the last week of March 2015, which will not be paid until April 5, 2015: $\begin{array}{lr}\text { Compensation (wages) } & \$ 36,000 \\\text { Income taxes withheld } & 7,350 \\\text { Health insurance withheld } & 200\end{array}$ FICA taxes at a 7.65% rate (no employee had reached the maximum).
Required:
A. Prepare the March 31, 2015 journal entry to record the payroll and the related employee deductions.
B. Prepare the March 31, 2015 journal entry to record the employer's FICA payroll tax expense.
C. Calculate the total payroll-related liabilities at March 31, 2015 using the results of requirements (A) and (B) above.

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Definitions:

Substantially Impair

To significantly weaken or reduce the ability, value, or function of something.

Reject

To refuse to accept, submit to, believe, or make use of something.

Perfect Tender Rule

Requirement that the seller deliver the goods in conformity with the contract, down to the last detail.

Local

Pertaining to or occurring in a particular area, community, or jurisdiction, not widespread or general.