Question

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	$74,100
	3. Total earnings	?
Deductions:
	4. Social security tax	29,640
	5. Medicare tax	7,410
	6. Income tax withheld	126,000
	7. Medical insurance	17,000
	8. Union dues	?
	9. Total deductions	183,000
	10. Net amount paid	311,000
Accounts debited:
	11. Factory Wages	261,800
	12. Sales Salaries	?
	13. Office Salaries	98,800

a. Calculate the amounts omitted in lines (1), (3), (8), and (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. Calculate the amounts omitted in lines (1), (3), (8), and (12).
In the following summary of data for a payroll period, some amounts have been intentionally omitted:
Earnings:
	1. At regular rate	$ 419,900.00	Total Earnings - Earnings at overtime rate
	2. At overtime rate	$74,100
	3. Total earnings	$ 494,000.00	Net amount paid + Total deductions
Deductions:
	4. Social security tax	$   29,640.00
	5. Medicare tax	$     7,410.00
	6. Income tax withheld	$ 126,000.00
	7. Medical insurance	$   17,000.00
	8. Union dues	$     2,950.00	Total Deductions - Sum of other Deductions(#4 through #7 deductions)
	9. Total deductions	$ 183,000.00
	10. Net amount paid	$ 311,000.00
Accounts debited:
	11. Factory Wages	261,800
	12. Sales Salaries	$ 133,400.00	Total earnings  - Factory wages - Office salaries
	13. Office Salaries	98,800
b. Journalize the entry to record the payroll accrual. If an amount box does not require an entry, leave it blank.
Date	Account	Debit	Credit
	Factory Wages Expense	$261,800
	Sales Salaries Expense	$133,400
	Office Salaries Expense	$98,800
	Social Security Tax Payable		$                     29,640.00
	Medicare Tax Payable		$                       7,410.00
	Income Tax Payable		$                   126,000.00
	Medical Insurance Payable		$                     17,000.00
	Union Dues Payable		$                       2,950.00
	Salaries & Wages Payable		$311,000
c. Journalize the entry to record the payment of the payroll.
Date	Account	Debit	Credit
	Salaries & Wages Payable	$311,000
	Cash		$311,000