Response to the following questions:
1. According to a summary of the payroll of Pendant Publishing Co., $800,000 of payroll was subject to the 7.5% FICA tax. Also, $17,500 was subject to state and federal unemployment taxes.
a. Calculate the employer's payroll taxes using the following rates: state unemployment, 4.3%; federal unemployment, 0.8%.
b. Record the entry for the accrual of payroll taxes.
2. A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $325,600. Record the adjusting entry required on January 31, the end of the first month of the current year, to accrue the vacation pay.