Payroll Worksheet and Journal Entries The payroll records of UX Corporation for
ID: 2422158 • Letter: P
Question
Payroll Worksheet and Journal Entries
The payroll records of UX Corporation for the week ending October 7, the fortieth week in the year, show the following:
Employee
Classification
Salary or Wage per 40hr Week
Hours Worked
Income Tax Withheld
Gross Earnings Through 39th Week
Allen
President
$2,489
40
$488
$109,560
Devine
V. President
$2,238
40
$402
$99,500
Fiorelli
Supervisor-Production
$700
40
$180
$27,300
O’Clock
Factory-Direct
$500
48
$150
$19,820
O’Reilly
Factory-Direct
$400
46
$160
$17,200
Pawlukiewicz
Factory-Direct
$400
44
$110
$16,600
Surdick
Factory-Direct
$380
42
$120
$15,200
Trebbi
Factory-Indirect
$300
42
$80
$7,800
Webb
Factory-Indirect
$300
42
$60
$6,600
Required:
1. Complete a worksheet with the following column headings:
Employee – 3 columns for Earnings for Week:
*Use one for Regular Pay
*Use one for Overtime Premium Pay
*Use one for (the company pays time-and-a-half for overtime for all employees below the supervisory level)
*Use one for Total for Week
Total Earnings Through 14th Week
FICA Taxable Earnings
FICA
Income Tax Withheld
Net Earnings
2. Prepare journal entries for the following:
a. Payroll for the 14th Week
b. Payment of payroll for the week
c. Distribution of the payroll costs, assuming that overtime premium is charged to all jobs worked on during the period.
d. Employer’s Payroll Tax Liability
3. The company carries disability insurance policy for the employees at a cost of $15 per week for each employee. Journalize the employer’s cost of insurance premiums for the week.
Employee
Classification
Salary or Wage per 40hr Week
Hours Worked
Income Tax Withheld
Gross Earnings Through 39th Week
Allen
President
$2,489
40
$488
$109,560
Devine
V. President
$2,238
40
$402
$99,500
Fiorelli
Supervisor-Production
$700
40
$180
$27,300
O’Clock
Factory-Direct
$500
48
$150
$19,820
O’Reilly
Factory-Direct
$400
46
$160
$17,200
Pawlukiewicz
Factory-Direct
$400
44
$110
$16,600
Surdick
Factory-Direct
$380
42
$120
$15,200
Trebbi
Factory-Indirect
$300
42
$80
$7,800
Webb
Factory-Indirect
$300
42
$60
$6,600
Explanation / Answer
Gross Earnings for the 40th week
Gross Earnings for the 39th week
FICA Taxable Earnings
Income Tax Withheld
Total Income Tax Withheld
Net Earnings = Gross Earnings 40th - total tax withheld
Hours Per Rate = Amount/no.of hours
Hours Per Rate =Amount/no.of hours
Income Tax Withheld
Name Type of Labour Regular Earnings Overtime PremiumGross Earnings for the 40th week
Gross Earnings for the 39th week
FICA Taxable Earnings
Income Tax Withheld
Total Income Tax Withheld
Net Earnings = Gross Earnings 40th - total tax withheld
No. of hoursHours Per Rate = Amount/no.of hours
Amount No. of hoursHours Per Rate =Amount/no.of hours
Amount Total FICA 8%Income Tax Withheld
Allen President 40 $62.22 $2,489 0 0 $0.00 $2,489 $2,489 $109,560 0 0 $488 $488 $2,001 Divine V. President 40 $55.95 $2,238 0 0 $0.00 $2,238 $2,238 $99,500 500 $40.00 $402 $442 $1,796 Fiorelli supervisor Production 40 $17.50 $700 0 0 $0.00 $700 $700 $27,300 $700 $56.00 $180 $236 $464 O’Clock Factory Direct 48 $10.42 $500 8 $5.21 $41.67 $541.67 $541.67 $19,820 $541.67 $43.33 $150 $193 $348 O’Reilly Factory Direct 46 $8.70 $400 6 $4.35 $26.09 $426.09 $426.09 $17,200 $426.09 $34.09 $160 $194 $232 Pawlukiewicz Factory Direct 44 $9.09 $400 4 $4.55 $18.18 $418.18 $418.18 $16,600 $418.18 $33.45 $110 $143 $275 Surdick Factory Direct 42 $9.05 $380 2 $4.52 $9.05 $389.05 $389.05 $15,200 $389.05 $31.12 $120 $151 $238 Trebbi Factory Indirect 42 $7.14 $300 2 $3.57 $7.14 $307.14 $307.14 $7,800 $307.14 $24.57 $80 $105 $203 Webb Factory Indirect 42 $7.14 $300 2 $3.57 $7.14 $307.14 $307.14 $6,600 $307.14 $24.57 $60 $85 $223 $7,707 $26 $109 $7,816 $7,816 $287 $1,750 $2,037 $5,779Related Questions
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