2. Journalize the entry to record the payroll Employees Mantle and Williams are

Question

2. Journalize the entry to record the payroll

Employees Mantle and Williams are office staff, and all of the other employees are sales personal. All sales personnel are paid IV, times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0%, and Medicare tax is 1.5% of each employee's annual earnings. The next payroll check to be used is No. 901. Prepare a payroll register for Throwback Industries Inc. for the week ended December 7, 2014. Use the following columns for the payroll register: Employee, Total Hours, Regular Earnings, Overtime Earnings, Total Earnings, Social Security Tax, Medicare Tax, Federal Income Tax, U.S. Savings Bonds, Total Deductions, Net Pay, Ck.No.,

Explanation / Answer

1. Calculate total salaries:

Aaron = (40*68) + (6*102) = 3332

Cobb = (40*62) + (1*93) = 2573

Clemente = (40*70) + (8*105) = 3640

Demaggio = 35 * 56 = 1960

Griffey, Jr. = (40*62) + (5*93) = 2945

Mantle = 1800

Robinson = 36*54 = 1944

Williams = 2000

Vaughn = (40*62) + (2*93) = 2666

Total 22860

2. Write entry.

Payroll Expense Dr. 22860

Income tax payable Cr. 4738.01 (Add up numbers listed for Federal income tax)

Social security tax payable Cr. 1371.60 (6% * 22860)

Medicare tax payable Cr. 340.20 (1.5% * 22680)

Contributions payable Cr. 885 (U.S. treasury bons)

Wages payable Cr. 15525.19 (22860-4738.01-1371.60-340.20-885)

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.