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	$54,100
	3. Total earnings	?
Deductions:
	4. Social security tax	21,660
	5. Medicare tax	5,415
	6. Income tax withheld	92,000
	7. Medical insurance	12,400
	8. Union dues	?
	9. Total deductions	134,000
	10. Net amount paid	227,000
Accounts debited:
	11. Factory Wages	191,300
	12. Sales Salaries	?
	13. Office Salaries	72,200

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

Total Earnings:
Total deductions		134000
Add: Net earnings		227000
Total earnings -3		361000
Total earnings			361000
Lless: Overtime wages			54,100
Earnings at regular rate -1			306,900
Total deductions:			134000
Less: Deduction given
Social security tax		21660
Medicare tax		5415
income tax withheld		92000
Mediccal insurance		12400	131475
Union dues-8			2525
Total Earnings			361000
Less: factory wages			191300
Less: office salaries			72200
Sales salaries -12			97500
Req b:
Journal entry:
factory salaries and wages Dr.			191300
Sales salaries and wages Dr.			72200
Office admin Salaries and wages Dr.			97500
Social Security tax payable				21660
Medicare tax payable				5415
Income tax payable				92000
Medical insurance payable				12400
Union Dues payable				2525
Salaries and wages payable				227000
Req c:
Salaries and wages payable Dr.			227000
Cash account				227000