Question

Payroll Register

The following data for Throwback Industries, Inc. relate to the payroll for the week ended December 9:

	Hours		Hourly		Weekly		Federal		U.S. Savings
Employee	Worked		Rate		Salary		Income Tax		Bonds
Blanda	44		$40				$423.20		$45
Dawson	42		28				258.86		60
Fouts	45		36				324.9		85
Griese	36		38				287.28		70
Namath	48		44				480.48		95
Marino					$1,990		477.60		100
Staubach	38		32				182.40		40
Starr					2,230		490.60		40
Unitas	43		46				409.40		110

Employees Marino and Starr 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%, and Medicare tax is 1.5% of each employee's annual earnings. The next payroll check to be used is No. 625.

Required:

1. Prepare a payroll summary for Throwback Industries, Inc. for the week ended December 9. Assume the normal working hours in a week are 40 hours. Enter amounts as positive numbers. Round your intermediate calculations and final answers to the nearest whole cent (two decimal places).

Payroll for Week Ending December 9
		Earnings			Deductions					Paid		Accounts Debited
Name	Total Hours	Regular	Overtime	Total	Social Security Tax	Medicare Tax	Federal Income Tax	U.S. Savings Bonds	Total	Net Pay	Ck No.	Sales Salaries Expense	Office Salaries Expense
Blanda	44	$	$	$	$	$	$423.20	$45	$	$	625	$
Dawson	42						258.86	60			626
Fouts	45						324.90	85			627
Griese	36						287.28	70			628
Namath	48						480.48	95			629
Marino							477.60	100			630		$
Staubach	38						182.40	40			631
Starr							490.60	40			632
Unitas	43						409.40	110			633
Totals		$	$	$	$	$	$	$	$	$		$	$

2. Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. If an amount box does not require an entry, leave it blank.

Answer 1

1). Payroll for Week Ending Decembt 2009 Deductions Particulars Earning Paid Accounts Debited S. No Total Hours Regurlar Overtime Federal Income U.S Saving Net Pay Total (For First 40 Hours Social Security Tax Medicare Total Ck. No Sales Office Name (Given) Salaries Noramal then @6% Tax @1.50% Tax (Given) Bond Salaries Overtime) (Given) Expenses Expenses F=(IF(C>40,((40 D) + (C- (E-C 1.5) (K-G+H+l+J) (L-F- K) 40)*(E))).(C*D)) (G=F*6%) (H=F*1.5%) (N-F) (O=F) 1840.00 A C D J M Blanda 27,60 423.20 45.00 1233.80 44 40 60 1840.00 110.40 606.20 625 2 1204.00 Dawson 42 28 42 72.24 18.06 258.86 60.00 409.16 794.84 626 1204.00 1710.00 102.60 324.90 85.00 538.15 1171.85 1710.00 3 Fouts 45 36 54 25.65 627 1368.00 287.28 70.00 459.88 4 Griese 36 38 57 82.08 20.52 908.12 628 1368.00 5 Namath 2288.00 137.28 34.32 95.00 1540.92 2288.00 48 44 66 480.48 747.08 629 Marino 477.60 726.85 1263.15 6 1990.00 119.40 29.85 100.00 630 1990.00 7 Staubach 72.96 18.24 40.00 313.60 902.40 38 32 48 1216.00 182.40 631 1216.00 starr 2230.00 133.80 40.00 1532.15 632 33.45 490.60 697.85 2230.00 Unitas 2047.00 9 43 46 69 122.82 30.71 409.40 110.00 672.93 1374.08 633 2047.00 238.40 645.00 11673.00 Total 15893.00 953.58 3334.72 5171.70 10721.31 5661.00 4220,00

2).Journal Entries Credit Particulars Debit Date Sales Salaries 09-Dec-XXXX Expenses 11673.00 Office Salaries Expenses 4220,00 Social Security Tax @6% 953.58 Medicare Tax @1.50% 238.40 Federal Income Tax 3334,72 U.S Saving Bond Salaries Payable 645.00 10721.31 (Being Salary Payable for the week of Dec 9) 15893.00 15893.00 Social Security Tax 09-Dec-XXXX @6% 953.58 Medicare Tax @1.50% 238.40 Federal Income Tax 3334.72 U.S Saving Bond Payroll Tax Payable 645.00 5171.70 (Being Payroll Tax Payable for the week of Dec 9) 5171.70 5171.70

Hence

Total

Office Salary 4220/-

Sales Salary Expenses 11673/-