EX 10-10 Summary payroll data OBJ. 2,3 In the following summary of data for a pa
ID: 2560211 • Letter: E
Question
EX 10-10 Summary payroll data OBJ. 2,3 In the following summary of data for a payroll period, some amounts have been intention- ally omitted: Earnings 1. At regular rate 2. At overtime rate 3. Total earnings $80,000 Deductions: 4. Social security tax 5. Medicare tax 6. Income tax withheld 7. Medical insurance 8. Union dues 9. Total deductions 32,400 8,100 135,000 18,900 201,150 338,850 10. Net amount paid Accounts debited: 11. Factory Wages 285,000 120,000 a. Calculate the amounts omitted in lines (1), (3), (8), and (12). 12. Sales Salaries 13. Office Salaries b. Journalize the entry to record the payroll accrual. c. Journalize the entry to record the payment of the payroll.Explanation / Answer
Answers :
a)calculation of amounts omitted in lines :
(3) Total earnings can be computed by adding net pay and total deduction=(Total deductions + Net amount paid )=201,150+338,850 =$540,000
(1) Subtracting (,total earnings - Total deductions) = (540,000-80,000) = $460,000
(8) Union dues can be computed by totalling all the other deductions and subtracting total deductions = (32,400+8,100+135,000+18,900 -201,150) = 6750
(12) Sales salaries =(540,000-285,000-120,000) = $135,000
a) (1) regular rate =$460,000 , (3) total earnings = $540,000 ,(8) union dues = $6750 , (12) sales salaries = $135,000 .
b) journal entry to payroll accrual
factory wages 285,000
sales salaries 135,000
office salaries 120,000
social security tax 32,400
medicare tax 8,100
income tax withheld 135,000
medical insurance 18,900
union dues 6,750
total deductions 201,150
payroll payable 137,700
c) journal entry to payroll payable
payroll payable 137,700
cash 137,700
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