Question

Determine the gross pay for each employee listed below. When necessary, round intermediate calculations and the final answer to the nearest cent.

1. Clay Jones is paid time-and-a-half for all hours over 40. He worked 45 hours during the week. His regular pay rate is $25 per hour.

   $

2. Mary James worked 48 hours during the week. She is entitled to time-and-a-half for all hours in excess of 40 per week. Her regular pay rate is $20 per hour.

   $

3. Lori Terry is paid a commission of 10 percent of her sales, which amounted to $23,650.

   $

4. Nicole Smith's yearly salary is $95,500. During the week, she worked 46 hours, and she is entitled to time-and-a-half for all hours over 40.

   $

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For tax purposes, assume that the maximum taxable earnings are $118,500 for Social Security and $7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee. If an amount is zero, enter "0".

NAME	BEGINNING CUMULATIVE EARNINGS	TOTAL EARNINGS	ENDING CUMULATIVE EARNINGS	TAXABLE EARNINGS
				UNEMPLOYMENT	SOCIAL SECURITY	MEDICARE
Axton, C.	112,800.00	7,691.00	120,491.00
Edgar, E.	145,465.00	10,900.00	156,365.00
Gorman, L.	36,879.00	3,064.00	39,943.00
Jolson, R.	24,634.00	2,325.00	26,959.00
Nixel, P.	6,850.00	2,463.00	9,313.00

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On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned $14,960, its truck driver employees had earned $10,692, and its office employees had earned $8,670. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, $3,975, and union dues, $560.

Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. If necessary, round intermediate calculations and the final answer to the nearest cent. If an amount box does not require an entry, leave it blank.

GENERAL JOURNAL						PAGE
DATE	DESCRIPTION	DOC. NO.		POST. REF.	DEBIT	CREDIT
20--
Jan. 21	Sales Salary Expense
	Driver Salary Expense
	Office Salary Expense
	Employees' Federal Income Tax Payable
	FICA Social Security Tax Payable
	FICA Medicare Tax Payable
	Employees' Union Dues Payable
	Salaries Payable
	From payroll register.

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Answer 1