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	$58,000
	3. Total earnings	?
Deductions:
	4. Social security tax	23,220
	5. Medicare tax	5,805
	6. Income tax withheld	98,600
	7. Medical insurance	13,300
	8. Union dues	?
	9. Total deductions	143,000
	10. Net amount paid	244,000
Accounts debited:
	11. Factory Wages	205,100
	12. Sales Salaries	?
	13. Office Salaries	77,400

a. Calculate the amounts omitted in lines (1), (3), (8), and (12).

(1)	$
(3)	$
(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

Answer -

a. Answer -

1)	At regular rate	$329000
3)	Total earnings	$387000
8)	Union dues	$2075
12)	Sales salaries	$104500

Calculation :

	Net amount paid		$244000
	Add : Total deductions		$143000
3)	Total earnings		$387000
	Less : Overtime		$58000
1)	Regular		$329000
	Total deductions		$143000
	Less :
	Social security tax	$23220
	Medicare tax	$5805
	Income tax withheld	$98600
	Medical insurance	$13300	$140925
8)	Union dues		$2075
	Total earnings		$387000
	Less :
	Factory wages	$205100
	Office salaries	$77400	$282500
12)	Sales salaries		$104500

b. Answer -

Entry to record the payroll accrual.

	Debit	Credit
Factory wages expense	$205100
Sales salaries expense	$104500
Office salaries expense	$77400
Social security tax payable		$23220
Medicare tax payable		$5805
Income tax withheld payable		$98600
Medical insurance payable		$13300
Union dues payable		$2075
Salaries payable		$244000

c. Answer -

Entry to record the payment of the payroll.

	Debit	Credit
Salaries payable	244000
Cash		244000