The following data for Throwback Industries Inc. relate to the payroll for the w
ID: 2532404 • Letter: T
Question
The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 20Y8:
Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ 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.
Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles.
1. Prepare a payroll register for Throwback Industries Inc. for the week ended December 9, 20Y8. Assume the normal working hours in a week are 40 hours. Enter amounts as positive numbers and round your intermediate calculations and final answers to the nearest whole cent (two decimal places).
Payroll for Week Ending December 9, 20Y8
1
Earnings
Earnings
Earnings
Deductions
Deductions
Deductions
Deductions
Deductions
Paid
Paid
Account Debited
Account Debited
2
Employee
Total Hours
Regular
Overtime
Total
Social Security Tax
Medicare Tax
Federal Income Tax
Retirement Savings
Total
Net Pay
Ck. No.
Sales Salaries Expense
Office Salaries Expense
3
Aaron
43.00
$689.44
$140.00
#901
4
Cobb
43.00
539.92
150.00
#902
5
Clemente
45.00
668.44
160.00
#903
6
DiMaggio
39.00
377.80
#904
7
Griffey, Jr.
48.00
749.08
170.00
#905
8
Mantle
317.45
160.00
#906
9
Robinson
38.00
387.32
170.00
#907
10
Williams
426.24
165.00
#908
11
Vaughn
48.00
770.08
40.00
#909
12
$4,925.77
$1,155.00
2. Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
1
2
3
4
5
6
7
Employee Hours Worked Hourly Rate Weekly Salary Federal Income Tax Retirement Savings Aaron 43 $70 $689.44 $140 Cobb 43 58 539.92 150 Clemente 45 64 668.44 160 DiMaggio 39 52 377.80 0 Griffey, Jr. 48 64 749.08 170 Mantle $1,700 317.45 160 Robinson 38 53 387.32 170 Williams 2,100 426.24 165 Vaughn 48 64 770.08 40Explanation / Answer
Answer 1. Employee Total hours Hourly Rate Earnings Deductions Net Pay Account Debited Regular Overtime Earnings Total Social Security Tax (6%) Medicare Tax (1.50%) Fedederal I Tax Retirement Savings Total Sales Salaries Expense Office Salaries Expense Aaron 43 70.00 2,800.00 315.00 3,115.00 186.90 46.73 689.44 140.00 1,063.07 2,051.94 3,115.00 Cobb 43 58.00 2,320.00 261.00 2,581.00 154.86 38.72 539.92 150.00 883.50 1,697.51 2,581.00 Clemente 45 64.00 2,560.00 480.00 3,040.00 182.40 45.60 668.44 160.00 1,056.44 1,983.56 3,040.00 DiMaggio 39 52.00 2,028.00 - 2,028.00 121.68 30.42 377.80 - 529.90 1,498.10 2,028.00 Griffey, Jr 48 64.00 2,560.00 768.00 3,328.00 199.68 49.92 749.08 170.00 1,168.68 2,159.32 3,328.00 Mantle 1,700.00 - 1,700.00 102.00 25.50 317.45 160.00 604.95 1,095.05 1,700.00 Robinson 38 53.00 2,014.00 - 2,014.00 120.84 30.21 387.32 170.00 708.37 1,305.63 2,014.00 Williams 2,100.00 - 2,100.00 126.00 31.50 426.24 165.00 748.74 1,351.26 2,100.00 Vaughn 48 64.00 2,560.00 768.00 3,328.00 199.68 49.92 770.08 40.00 1,059.68 2,268.32 3,328.00 Total 20,642.00 2,592.00 23,234.00 1,394.04 348.51 4,925.77 1,155.00 7,823.32 15,410.68 19,434.00 3,800.00 Answer 2. Journal Entry Date Particulars Dr. Amt Cr. Amt. 1. Sales Salaries Expense 19,434.00 Office Salaries Expense 3,800.00 Social Security Tax Payable 1,394.04 Medicare Tax Payable 348.51 Employee Federal Income Tax Payable 4,925.77 Retirement Saving Deductions Payable 1,155.00 Salaries Payable 15,410.68 (record the payroll for the week)
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