Question - For the year ended December 31, 2010, Blasing Electrical Repair Company reports the following summary payroll data.
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Gross earnings:
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Administrative salaries
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$203,900
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Electricians' wages
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374,400
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Total
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$578,300
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Deductions:
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FICA taxes
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$39,365
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Federal income taxes withheld
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176,960
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State income taxes withheld (3%)
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17,349
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United Fund contributions payable
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27,758
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Hospital insurance premiums
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17,465
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Total
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$278,897
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Blasing Company's payroll taxes are: FICA 8%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to FICA taxes total $492,062, and unemployment taxes total $137,057.
Prepare a summary journal entry at December 31 for the full year's payroll.
Journalize the adjusting entry at December 31 to record the employer's payroll taxes.