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11:46 PM v2. cengagenow.com Chapter1 Jackson C.. Chapter 1 Favorites Chapter 11

ID: 2585747 • Letter: 1

Question

11:46 PM v2. cengagenow.com Chapter1 Jackson C.. Chapter 1 Favorites Chapter 11 Current Liabilities and Payr Summary Payroll Data In the following summary of data for a payroll period, some amounts have been intentionally omitted Earnings 1. At regular rate 2. At overtime rate 3. Total earnings $55,400 Deductions: 4. Social security tax 5. Medicare tax 6. Income tax withheld 7. Medical insurance 8. Union dues 9. Total deductions 10. Net amount paid 22,200 5,550 94,200 12,700 137,000 233,000 Accounts debited: 196,100 11. Factory Wages 12. Sales Salaries 13. Office Salaries 74,000 a. Calculate the amounts omitted in lines (1), (3), (8), and (12) (12) Previous Next

Explanation / Answer

3.

Total earnings = Net amount + Total deductions

                        = 233,000 + 137,000

                        = 370,000 (Answer)

1.

At regular rate = Total earnings – At overtime rate

                        = 370,000 – 55,400

                        = 314,600 (Answer)

8.

Union dues = Total deductions – (Social security + Medicare + Income tax + Medical insurance)

                        = 137,000 – (22,200 + 5,550 + 94,200 + 12,700)

                        = 137,000 – 134,650

                        = 2,350 (Answer)

12.

Sales salaries = Total earnings – (Factory wages + Office salaries)

                        = 370,000 – (196,100 + 74,000)

                        = 370,000 – 270,100

                        = 99,900 (Answer)