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Managing Payroll

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November 5th, 2022

Suntrust bank has an annual payroll of $800,000. In addition, the bank incurs payroll tax expense of 9%. At December 31, the end of the bank’s accounting year, Suntrust owes salaries of $7,000 and FICA and other payroll tax of $2,000. The bank will pay these amounts early next year.

Show what the Suntrust bank will report for the foregoing on its income statement and year-end balance sheet.

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