### Prepare a journal entry summarizing the payment of adams

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Adam earns a salary of \$7,500 per month during the year. FICA taxes are 8% on the first \$100,000 of gross earnings. Federal unemployment insurance taxes are 6.2% of the first \$7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the \$7,000. During the year, \$25,600 was withheld for federal income taxes and \$5,700 was withheld for state income taxes.

Instructions

(a) Prepare a journal entry summarizing the payment of Adam's total salary during the year.

(b) Prepare a journal entry summarizing the employer payroll tax expense on Adam's salary for the year.

(c) Determine the cost of employing Adam for the year.

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