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E10-4 (Algo) Recording Payroll Costs with and without Withholdings [LO 10-2] Assume an employee of Rocco Rock Company earns $2,100 of gross wages during the current pay period and is required to remit to the government \$210 for income tax and \$105 for FiCA. Consider the following two procedures for paying the employee: Required: 1. Ignoring employer payroll taxes, under each procedure calculate (a) the total amount to be paid by the company and (b) the amount of cash the employee will have after satisfying all responsibilites to the government. Do your answers for procedures 1 and 2 differ for (a) ? For (b)? 2. Which approach does the government require? 3. Considering that employers are responsible for matching employees' FiCA contributions, which procedure wilt employers prefer? 4. Prepare the journal entries required by the employer under procedure 1, assuming the employee is paid in cash, but the withholdings and matching employer FICA contribution have not yet been paid. (Do not ignore employer payroll taxes, but assume no unemployment taxes.) 1. Ignoring employer paytoll taxes, undet each proceduse calculate (a) the totai amount to be paid by the company and (b) the amount of cash the employee will have after satistying all responsibilities to the government. Do your answers for procedures 1 and 2 differ. for (a) ? For (b) ? 2. Which approach does the government require? 3. Considering that employers are responsible for matching employees' FICA contributions, which procedure will employers prefer? 4. Prepare the lournal entries required by the employer under procedure 1 , assuming the employee is paid in cash, but the withhoidings and matching employer FICA contribution have not yet been paid. (Do not ignore employer poyroll taxes, but assume no unemployment taxes.) Complete this question by entering your answers in the tabs below. Ignoring employer paytoll taxes, under each procedure calculate (a) the total amount to be paid by the company and (b) the amount of cash the employee wili have after satisfying all responsibilities to the government. Do your answers for procedures 1 and 2 differ for (a)? for (b) ? and matching employer FICA contribution have not yet been paid. (Do not ignore employer payroll taxes, but assum taxes.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the wages expense, including payroll deductions. Note: Enter debits before credite. Journal entry worksheet Record the payroll tax expense. Note: Enter debits before credits

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