Question

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9. Employee Hours Worked Hourly Rate Weekly Salary Federal Income Tax U.S. Savings Bonds Aaron 45 $62 $641.84 $135 Cobb 42 67 623.92 145 Clemente 49 68 835.88 155 DiMaggio 38 54 376.68 0 Griffey, Jr. 46 63 681.60 165 Mantle $1,600 292.45 155 Robinson 38 56 418.40 165 Williams 1,900 370.24 160 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 summary for Throwback Industries Inc. for the week ended December 9. 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.

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	45	2480	465	2945	176.7	44.175	$641.84	$135	$997.72	$1,947.29	901	2945
Cobb	42	2680	201	2881	172.86	43.215	623.92	145	$985.00	$1,896.01	902	2881
Clemente	49	2720	918	3638	218.28	54.57	835.88	155	$1,263.73	$2,374.27	903	3638
DiMaggio	38	2052	0	2052	123.12	30.78	376.68	0	$530.58	$1,521.42	904	2052
Griffey, Jr.	46	2520	567	3087	185.22	46.305	681.6	165	$1,078.13	$2,008.88	905	3087
Mantle				1600	96	24	292.45	155	$567.45	$1,032.55	906		1600
Robinson	38	2128	0	2128	127.68	31.92	418.4	165	$743.00	$1,385.00	907	2128
Williams				1900	114	28.5	370.24	160	$672.74	$1,227.26	908		1900
Vaughn	46	2520	567	3087	185.22	46.305	702.6	40	$974.13	$2,112.88	909	3087
Totals		$17,100.00	$2,718.00	$23,318.00	$1,399.08	$349.77	$4,943.61	$1,120.00	$7,812.46	$15,505.54		$19,818.00	$3,500.00
Account Title	Debit	Credit
Sales Salaries Expense	$19,818.00
Office Salaries Expense	$3,500.00
Social Security Tax Payable		$1,399.08
Medicare Tax Payable		$349.77
Employees Federal Income Tax Payable		$4,943.61
Retirement Savings Deductions Payable		$1,120.00
Salaries Payable		$15,505.54