Exhibit 6-1
the Totals from the First Payroll of the Year

question 20

Essay

Exhibit 6-1
The totals from the first payroll of the year are shown below.
​ $$\begin{array} { c c c c c c c } \text { Total } & \text { FICA } & \text { FICA } & \text { FIT } & \text { State } & \text { Union } & \text { Net } \\\text { Earnings } & \text { OASDI } & \text { HI } & \text { W/H } & \text { Tax } & \text { Dues } & \text { Pay } \\\$ 36,195.10 & \$ 2,244.10 & \$ 524.83 & \$ 6,515.00 & \$ 361.95 & \$ 500.00 & \$ 26,049.22 \\\hline\end{array}$$ ​
-Refer to Exhibit 6-1.Journalize the entry to record the employer's payroll taxes (assume a SUTA rate of 3.7%).

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's assets and earnings.

Preemptive Right

The right of existing shareholders to purchase additional shares before the company offers them to the public, maintaining their proportional ownership.

Common Shareholder

A common shareholder is an individual or institution that owns common shares in a company, giving them rights to vote at shareholder meetings and to receive dividends.

New Stock

Shares that have been issued to the public for the first time through an initial public offering (IPO) or additional issuance.