Question

Summary Payroll Data co int your cian in the following summary of data for a payroll period, some amounts have been intentionally omitted: nya sura ng Earnings: 1. At regular rate 2. At overtime rate $80,000 3. Total earnings Deductions: 4. Social security tax (32,400) 5. Medicare tax (8,100) 6. Income tax withheld (135,000) 7. Medical insurance (18,900) 8. Union dues 9. Total deductions (201,150) 10. Net amount paid $338,850 Accounts debited: 11. Factory Wages 285,000 12. Sales Salaries 13. Office Salaries 120,000 a. Calculate the amounts omitted in lines (1), (5), (6), and (12). Assume that the social security tax rate was 6.0% and the Medicare tax rate was 1.5% (1) $ (3) $

Answer 1

a
(1)	460000
(3)	540000
(8)	6750
(12)	135000
b
Factory wages expense	285000
Sales salaries expense	135000
Office Salaries expense	120000
Social security tax payable		32400
Medicare tax payable		8100
Employees income tax payable		135000
Medical insurance payable		18900
Union dues payable		6750
Salaries payable		338850
c
Salaries payable	338850
Cash		338850
Workings:
Net amount paid	338850
Add: Total deductions	201150
Total earnings	540000
Total earnings	540000
Less: At overtime rate	80000
At regular rate	460000
Total deductions	201150
Less:
Social security tax	32400
Medicare tax	8100
Income tax withheld	135000
Medical insurance	18900
= Union dues	6750
Total earnings	540000
Less:
Factory Wages	285000
Office Salaries	120000
= Sales Salaries	135000