Mike's Door Service's Payroll Data for the Second Week of June

question 54

Essay

Mike's Door Service's payroll data for the second week of June included the following:

Assume the following tax rates:
$$\begin{array} { l r } \text { FICA-OASDI } & 6.2 \% \\\text { FICA-Medicare } & 1.45 \% \\\text { State unemployment } & 1.5 \% \\\text { Federal unemployment } & 0.06 \%\end{array}$$
Required: Prepare the payroll tax expense entry.

---

Definitions:

Disclosure

The act of making new or important information known, especially regarding the financial state or performance of a company.

Material Events

Significant events that are likely to influence financial decisions or valuations of investors and analysts, requiring prompt disclosure by the entity involved.

Legal Action

Involves seeking remedy or resolution through judicial processes, including lawsuits or litigation, typically to enforce or protect legal rights or settle disputes.

Valuation

The process of determining the present value of an asset or company based on earnings, assets, and other relevant factors.