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	$79,100
	3. Total earnings	?
Deductions:
	4. Social security tax	31,620
	5. Medicare tax	7,905
	6. Income tax withheld	134,500
	7. Medical insurance	18,200
	8. Union dues	?
	9. Total deductions	195,000
	10. Net amount paid	332,000
Accounts debited:
	11. Factory Wages	279,300
	12. Sales Salaries	?
	13. Office Salaries	105,400

a. Calculate the amounts omitted in lines (1), (3), (8), and (12).

(1)	$
(3)	$
(8)	$
(12)	$

Feedback

Consider how deductions such as social security and Medicare taxes are calculated. How can these calculations help you solve for some of the missing amounts?

b. Journalize the entry to record the payroll accrual. If an amount box does not require an entry, leave it blank.

	Factory Wages Expense
	Sales Salaries Expense
	Office Salaries Expense
	Social Security Tax Payable
	Medicare Tax Payable
	Employees Income Tax Payable
	Medical Insurance Payable
	Union Dues Payable
	Salaries Payable

Answer 1

a
(1)	447900
(3)	527000
(8)	2775
(12)	142300
b
Factory Wages Expense	279300
Sales Salaries Expense	142300
Office Salaries Expense	105400
Social Security Tax Payable		31620
Medicare Tax Payable		7905
Employees Income Tax Payable		134500
Medical Insurance Payable		18200
Union Dues Payable		2775
Salaries Payable		332000
Workings:
a
Net amount paid	332000
Add: Total deductions	195000
(3) Total earnings	527000
Less: Overtime	79100
(1) At regular rate	447900
Total deductions	195000
Less:
Social security tax	31620
Medicare tax	7905
Income tax withheld	134500
Medical insurance	18200
(8) Union dues	2775
Total earnings	527000
Less:
Factory Wages	279300
Office Salaries	105400
(12) Sales Salaries	142300