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	$83,900
	3. Total earnings	?
Deductions:
	4. Social security tax	33,540
	5. Medicare tax	8,385
	6. Income tax withheld	142,600
	7. Medical insurance	19,300
	8. Union dues	?
	9. Total deductions	207,000
	10. Net amount paid	352,000
Accounts debited:
	11. Factory Wages	296,300
	12. Sales Salaries	?
	13. Office Salaries	111,800

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
(1)	475100
(3)	559000
(8)	3175
(12)	150900
b
Factory wages expense	296300
Sales salaries expense	150900
Office Salaries expense	111800
Social security tax payable		33540
Medicare tax payable		8385
Employees income tax payable		142600
Medical insurance payable		19300
Union dues payable		3175
Salaries payable		352000
c
Salaries payable	352000
Cash		352000
Workings:
Net amount paid	352000
Add: Total deductions	207000
Total earnings	559000
Total earnings	559000
Less: At overtime rate	83900
At regular rate	475100
Total deductions	207000
Less:
Social security tax	33540
Medicare tax	8385
Income tax withheld	142600
Medical insurance	19300
= Union dues	3175
Total earnings	559000
Less:
Factory Wages	296300
Office Salaries	111800
= Sales Salaries	150900