Question

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 2016:

Employee	Hours Worked	Hourly Rate	Weekly Salary	Federal Income Tax	U.S. Savings Bonds
Aaron	43	$70		$689.44	$130
Cobb	43	58		539.92	140
Clemente	45	64		668.44	150
DiMaggio	39	52		377.80	0
Griffey, Jr.	48	64		749.08	160
Mantle			$1,700	317.45	150
Robinson	38	53		387.32	160
Williams			2,100	426.24	155
Vaughn	48	64		770.08	70

Employees Mantle and Williams 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 6.0%, and Medicare tax is 1.5% of each employee’s annual earnings. The next payroll check to be used is No. 901.

	Required:
1.	Prepare a payroll register for Throwback Industries Inc. for the week ended December 9, 2016. Assume the normal working hours in a week are 40 hours. Enter amounts as positive numbers and round your intermediate calculations and final answers to the nearest whole cent (two decimal places).
2.	Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS
ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 221 Bond Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Office Salaries Expense 521 Sales Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 710 Interest Expense

Answer 1

Payroll for Week Ending December 9, 20Y8
		Earnings			Deductions					Paid		Accounts Debited
Name		Regular	Overtime	Total	Social Security Tax		Federal		Total	Net Pay	Ck No.	Sales	Office
	Total					Medicare	Income	Retirement				Salaries	Salaries
	Hours					Tax	Tax	Savings				Expense	Expense
Aaron	43	2800	315	3115	186.9	46.725	$689.44	$120	$1,043.07	$2,071.94	901	3115
Cobb	43	2320	261	2581	154.86	38.715	539.92	130	$863.50	$1,717.51	902	2581
Clemente	45	2560	480	3040	182.4	45.6	668.44	140	$1,036.44	$2,003.56	903	3040
DiMaggio	39	2028	0	2028	121.68	30.42	377.8	0	$529.90	$1,498.10	904	2028
Griffey, Jr.	48	2560	768	3328	199.68	49.92	749.08	150	$1,148.68	$2,179.32	905	3328
Mantle				1700	102	25.5	317.45	140	$584.95	$1,115.05	906		1700
Robinson	38	2014	0	2014	120.84	30.21	387.32	150	$688.37	$1,325.63	907	2014
Williams				2100	126	31.5	425.24	145	$727.74	$1,372.26	908		2100
Vaughn	48	2560	768	3328	199.68	49.92	770.08	70	$1,089.68	$2,238.32	909	3328
Totals		$16,842.00	$2,592.00	$23,234.00	$1,394.04	$348.51	$4,924.77	$1,045.00	$7,712.32	$15,521.68		$19,434.00	$3,800.00
Account Title	Debit	Credit
Sales Salaries Expense	$19,434.00
Office Salaries Expense	$3,800.00
Social Security Tax Payable		$1,394.04
Medicare Tax Payable		$348.51
Employees Federal Income Tax Payable		$4,924.77
Retirement Savings Deductions Payable		$1,045.00
Salaries Payable		$15,521.68