The Payroll Summary for December 31 for Waters Co

question 133

Essay

The payroll summary for December 31 for Waters Co.revealed total earnings of $80,000.All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%.Journalize the entry to record the accrual of employer payroll taxes.

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Definitions:

Deficiency In Cash

This term refers to a situation where the cash available is not sufficient to cover the cash required for operations or obligations.

Issuing Shares

The process by which a company distributes its shares to investors, thereby raising capital.

Decrease In Cash

A reduction in the amount of cash a company holds, which may result from payments for expenses, investments, or debts.

Statement Of Income

A financial document that reports a company's financial performance over a specific period, showing revenues, expenses, and net income.