13 Feb (Learning Objective 1: Account for payroll expense
(Learning Objective 1: Account for payroll expense and liabilities) Northeast Talent Search has an annual payroll of $168,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Northeast owes salaries of $7,900 and FICA and other payroll tax of $915. The company will pay these amounts early next year. Show what Northeast will report for the foregoing on its income statement for the year and on its year-end balance sheet.