Question

Summary Payroll Data

3. 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	$66,000
	3. Total earnings	?
Deductions:
	4. Social security tax	26,400
	5. Medicare tax	6,600
	6. Income tax withheld	112,200
	7. Medical insurance	15,200
	8. Union dues	?
	9. Total deductions	163,000
	10. Net amount paid	277,000
Accounts debited:
	11. Factory Wages	233,200
	12. Sales Salaries	?
	13. Office Salaries	88,000

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

a.	Net amount paid	277,000
	Total deductions	163,000
(3)	Total earnings	440,000
	Overtime	66,000
(1)	Regular	374,000
	Total deductions		163,000
	Social security tax	26,400
	Medicare tax	6,600
	Income tax withheld	112,200
	Medical Insurance	15,200	160,400
(8)	Union dues		2,600
	Total earnings		440,000
	Factory wages	233,200
	Office salaries	88,000	321,200
(12)			118,800
b.	Factory Wages Expense	233,200
	Sales Salaries Expense	118,800
	Office Salaries Expense	88,000
	Social Security Tax Payable		26,400
	Medicare Tax Payable		6,600
	Employees Income Tax Payable		112,200
	Medicare Insurance Payable		15,200
	Union Dues Payable		2,600
	Salaries Payable		277,000
c.	Salaries Payable	277,000
	Cash		277,000