Question 2: The total payroll of Blue Hens Company for the month of October, Year 1 was
$1,000,000
. Related to that payroll, Blue Hens withheld
$200,000
of federal income taxes,
$72,000
of social security (FICA) and medicare taxes, and
$5,000
of union dues. Blue Hens also paid the following payroll taxes:
$72,000
of social security (FICA) and medicare taxes,
$10,000
of federal unemployment taxes, and
$3,000
of state unemployment taxes. Write the journal entry or entries that Blue Hens must record related to its payroll in the space below on October 31, Year 1. Assume Blue Hens paid its employees in cash on October
31^(st )
but will pay all taxes and withholdings later in November.