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.

---

Definitions:

Arrogant Racist

An individual who combines an overbearing sense of superiority with discriminatory beliefs based on race.

Corporate Conglomeration

The process by which a corporation expands its business into different and unrelated sectors or the state of being a large and varied group of businesses.

Studio System

A method of film production and distribution dominated by a small number of "major" studios in Hollywood from the 1920s to the 1950s.

Production Code Administration

A regulatory body in the film industry that enforced the Hays Code, dictating moral content guidelines for films from the 1930s to the 1960s in the United States.