The Payroll Summary for December 31 for Waters Co

question 32

Essay

The payroll summary for December 31 for Waters Co. revealed total earnings of $80,000. Earnings subject to 6% social security tax were $60,000; earnings subject to 1.5% Medicare tax were $80,000; and earnings of $3,000 were subject to 4.3% state and 0.8% federal unemployment compensation tax. Journalize the entry to record the accrual of payroll taxes.

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Definitions:

Psychological Processes

Mental activities and functions involved in perception, learning, memory, and thinking, influencing behavior.

Buying Decision

The process by which a consumer or organization selects a product or service to purchase, influenced by factors such as need, desire, and affordability.

Buying Needs

Represents the recognized requirements or desires that prompt a consumer to consider purchasing products or services.

Trial Close

A sales technique where the salesperson asks the prospect a question or series of questions to gauge the prospect's readiness to buy and identify objections early.