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$[$The following information applies to the questions displayed below.$]$

The following summary data for the payroll period ended December $27,2021,$ are available for Cayman Coating Company:

Gross pay

FICA tax withholdings

Income tax withholdings

Group hospitalization insurance

Employee contributions $to$ pension plan

Total deductions

Net pay

Additional information:

For employees, FICA tax rates for $2021$ were $7\mathrm{.}65\%$ on the first $$142,800$ of each employee's annual earnings. However,

no employees had accumulated earnings for the year in excess of the $$142,800$ limit$.$

For employers, FICA tax rates for $2021$ were also $7\mathrm{.}65\%$ on the first $$142,800$ of each employee's annual earnings.

The federal and state unemployment compensation tax rates are $0\mathrm{.}6\%$ and $5\mathrm{.}4\%,$ respectively. These rates are levied

against the employer for the first $$7,000$ of each employee's annual earnings. Only $$14,300$ of the gross pay amount for

the December $27,2021,$ pay period was owed to employees who were still under the annual limit$.$

b$-1.$ Assuming that Cayman Coating Company's payroll for the last week of the year is to be paid on January $3,2022,$ use the

horizontal model to record the effects of the December $27,2021,$ entries for Accrued payroll taxes. Indicate the financial statement

effect.

Note: Enter decreases with a minus sign to indicate a negative financial statement effect.

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