Answer:
Oriole company
The wage earned by the employees is $80,000. However certain deductions need to be recognized and made payable to respective statutory institutions.
After deductions the Employee should receive $59,800 (80,000 - 6,120 - 9,600 - 4,000 - 480)
Journal entries
1.
Debit Wage Account with $59,800
Debit FiCA (Employee) Account with $6,120
Debit Fed. income Tax (Employee) Account with $9,600
Debit State Income Tax (Employee) Account with $4,000
Debit Union Deductions (Employee) Account with $480
Credit Wages Payable Account with $80,000
(Being Wages earned in March and its distribution between accruals to employee and accruals to statutory bodies)
2.
Debit Employer state unemployment taxes Account with $800
Credit Employer state unemployment taxes Payable Account with $800
(Being employer contribution to unemployment taxes in March)
