Question

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 $71,200 3. Total earnings Deductions: 4. Social security tax 28,500 7,125 5. Medicare tax 6. Income tax withheld 7. Medical insurance 8. Union dues 121,000 16,400 9. Total deductions 176,000 299,000 10. Net amount paid Accounts debited: 251,800 11. Factory Wages 12. Sales Salaries 13. Office Salaries 95,000 a. Calculate the amounts omitted in lines (1), (3), (8), and (12) $ (8) (12) b. Journalize the entry to record the payroll accrual. If an amount box does not require an entry, leave it blank. c. Journalize the entry to record the payment of the payroll.

Answer 1

a
(1)	403800
(3)	475000
(8)	2975
(12)	128200
b
Factory wages expense	251800
Sales salaries expense	128200
Office Salaries expense	95000
Social security tax payable		28500
Medicare tax payable		7125
Employees income tax payable		121000
Medical insurance payable		16400
Union dues payable		2975
Salaries payable		299000
c
Salaries payable	299000
Cash		299000
Workings:
Net amount paid	299000
Add: Total deductions	176000
Total earnings	475000
Total earnings	475000
Less: At overtime rate	71200
At regular rate	403800
Total deductions	176000
Less:
Social security tax	28500
Medicare tax	7125
Income tax withheld	121000
Medical insurance	16400
= Union dues	2975
Total earnings	475000
Less:
Factory Wages	251800
Office Salaries	95000
= Sales Salaries	128200