Question

Summary Payroll Data

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	$81,200
	3. Total earnings	?
Deductions:
	4. Social security tax	32,520
	5. Medicare tax	8,130
	6. Income tax withheld	138,000
	7. Medical insurance	18,700
	8. Union dues	?
	9. Total deductions	201,000
	10. Net amount paid	341,000
Accounts debited:
	11. Factory Wages	287,300
	12. Sales Salaries	?
	13. Office Salaries	108,400

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

1.Earnings at regular rate : $ 4,60,800

2. Total earnings : $ 5,42,000

3. Union dues : $ 3,650

4. Sales salaries : $ 1,46,300

Explanation :

To answer this question, we need to start from calculation of union dues.

Total deductions = Social security tax + Medicare tax + Income tax withheld + Medical insurance + Union dues

$2,01,000=$32,520 + $ 8,130 + $1,38,000 + $18,700 + Union dues

Union dues =$2,01,000- $32,520 + $ 8,130 + $1,38,000 + $18,700 = $3,650

Now net amount paid =total earnings-total deductions

$3,41,000= Total earnings - $2,01,000

Total eanings = $3,41000 + $2,01,000 = $ 5,42,000

Total eanings = Earnings at regular rate + Earnings at overtime rate

$5,42,000= Earnings at regular rate + $81,200

Earnings at regular rate = $5,42,000 - $81,200 = $ 4,60,800

Total earnings would be debited to different accounts like factory wages, sales salaries and office salaries

Thus

Factory wages+Sales salaries + office salaries = total earnings

$2,87,300 + Sales salaries + $1,08,400 = $ 5,42,000

Sales salaries = $5,42,000-$2,87,300- $1,08,400 = $1,46,300