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	42		$26				$257.14		$70
Dawson	46		44				463.54		85
Fouts	43		34				287.47		75
Griese	38		28				223.44		40
Namath	48		42				458.64		90
Marino					$2,150		516.00		90
Staubach	35		30				157.50		70
Starr					2,410		530.20		110
Unitas	45		40				380.00		80

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	42	$	$	$	$	$	$257.14	$70	$	$	625	$
Dawson	46						463.54	85			626
Fouts	43						287.47	75			627
Griese	38						223.44	40			628
Namath	48						458.64	90			629
Marino							516.00	90			630		$
Staubach	35						157.50	70			631
Starr							530.20	110			632
Unitas	45						380.00	80			633
Totals		$	$	$	$	$	$	$	$	$		$	$

Learning Objective 2.

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.

	Sales Salaries Expense
	Office Salaries Expense
	Social Security Tax Payable
	Medicare Tax Payable
	Employees Federal Income Tax Payable
	Bond Deductions Payable
	Salaries Payable

Answer 1

1.

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	42	1040.00	78.00	1118.00	67.08	16.77	257.14	70.00	410.99	707.01	625	1118.00
Dawson	46	1760.00	396.00	2156.00	129.36	32.34	463.54	85.00	710.24	1445.76	626	2156.00
Fouts	43	1360.00	153.00	1513.00	90.78	22.70	287.47	75.00	475.95	1037.05	627	1513.00
Griese	38	1064.00	0.00	1064.00	63.84	15.96	223.44	40.00	343.24	720.76	628	1064.00
Namath	48	1680.00	504.00	2184.00	131.04	32.76	458.64	90.00	712.44	1471.56	629	2184.00
Marino		2150.00	0.00	2150.00	129.00	32.25	516.00	90.00	767.25	1382.75	630		2150.00
Staubach	35	1050.00	0.00	1050.00	63.00	15.75	157.50	70.00	306.25	743.75	631	1050.00
Starr		2410.00	0.00	2410.00	144.60	36.15	530.20	110.00	820.95	1589.05	632		2410.00
Unitas	45	1600.00	300.00	1900.00	114.00	28.50	380.00	80.00	602.50	1297.50	633	1900.00
Totals		14114.00	1431.00	15545.00	932.70	233.18	3273.93	710.00	5149.81	10395.19		10985.00	4560.00

2.

Date	Account Titles and Explanation	Debit	Credit
Dec. 9	Sales salaries expense	10985.00
	Office salaries expense	4560.00
	Social security tax payable		932.70
	Medicare tax payable		233.18
	Employees federal income tax payable		3273.93
	Bond deductions payable		710.00
	Salaries payable		10395.19
	(To record the payroll)