Question

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 20Y8:

Employee	Hours Worked	Hourly Rate	Weekly Salary	Federal Income Tax	Retirement Savings
Aaron	45	$62		$641.84	$115
Cobb	42	67		623.92	125
Clemente	49	68		835.88	135
DiMaggio	38	54		376.68	0
Griffey, Jr.	46	63		681.60	145
Mantle			$1,600	292.45	135
Robinson	38	56		418.40	145
Williams			1,900	370.24	140
Vaughn	46	63		702.60	40

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, 20Y8. 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. 1. Prepare a payroll register for Throwback Industries Inc. for the week ended December 9, 20Y8. 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). Payroll for Week Ending December 9, 20Y8 1 Earnings Earnings Earnings Deductions Deductions Deductions Deductions Deductions Paid Paid Account Debited Account Debited 2 Employee Total Hours Regular Overtime Total Social Security Tax Medicare Tax Federal Income Tax Retirement Savings Total Net Pay Ck. No. Sales Salaries Expense Office Salaries Expense 3 Aaron 45.00 $641.84 $115.00 #901 4 Cobb 42.00 623.92 125.00 #902 5 Clemente 49.00 835.88 135.00 #903 6 DiMaggio 38.00 376.68 #904 7 Griffey, Jr. 46.00 681.60 145.00 #905 8 Mantle 292.45 135.00 #906 9 Robinson 38.00 418.40 145.00 #907 10 Williams 370.24 140.00 #908 11 Vaughn 46.00 702.60 40.00 #909 12 $4,943.61 $980.00 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. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7

Answer 1

1							Deductions					Paid
	Employee		Total hours	Earnings regular	Earnings overtime	Earnings total	Social security tax	Medicare tax	Federal income tax	Retirement savings	Deductions total	Net pay
						1	2=(1*6%)	3=(1*1.5%)	4	5	6=(2+3+4+5)	(1-6)
	Aaron		45	2480	465	2945	176.70	44.18	641.84	115	977.72	1967.29
				(40*62)	(5*62*1.5)
	Cobb		42	2680	201	2881	172.86	43.22	623.92	125	965.00	1916.01
				(40*67)	(2*67*1.5)
	Clemente		49	2720	918	3638	218.28	54.57	835.88	135	1243.73	2394.27
				(40*68)	(9*68*1.5)
	Di maggio		38	2052	0	2052	123.12	30.78	376.68	0	530.58	1521.42
				(38*54)
	Griffey, Jr.		46	2520	567	3087	185.22	46.31	681.60	145	1058.13	2028.88
				(40*63)	(6*63*1.5)
	Mantle					1600	96	24	292.45	135	547.45	1052.55
	Robinson		38	2128	0	2128	127.68	31.92	418.40	145	723.00	1405.00
				(38*56)
	Williams					1900	114.00	28.50	370.24	140	652.74	1247.26
	Vaughn		46	2520	567	3087	185.22	46.31	702.60	40	974.13	2112.88
				(40*63)	(6*63*1.5)
	Total					23318	1399.08	349.77	4943.61	980	7672.46	15645.54
2	Date	Description				Post.Ref	Debit	Credit	Assets	Liabilites	Equity
	Dec 9.	Salaries and wages expense					23318				-23318
		Social security taxes payable						1399.08		1399.08
		Medicare taxes payable						349.77		349.77
		Federal income tax payable						4943.61		4943.61
		Retirement savings payable						980		980
		Salaries and wages payable						15645.54		15645.54
		(Recorded payroll for the week)