Question

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 2016: Employee Hours Worked Hourly Rate Weekly Salary Federal Income Tax U.S. Savings Bonds Aaron 43 $70 $689.44 $120 Cobb 43 58 539.92 130 Clemente 45 64 668.44 140 DiMaggio 39 52 377.80 0 Griffey, Jr. 48 64 749.08 150 Mantle $1,700 317.45 140 Robinson 38 53 387.32 150 Williams 2,100 426.24 145 Vaughn 48 64 770.08 60 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 register for Throwback Industries Inc. for the week ended December 9, 2016. 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

Answer 1.
Employee	Total hours	Hourly Rate	Earnings			Deductions					Net Pay	Account Debited
			Regular	Overtime	Earnings Total	Social Security Tax (6%)	Medicare Tax (1.50%)	Fedederal I Tax	US Saving Bonds	Total		Sales Salaries Expense	Office Salaries Expense
Aaron	43	70.00	2,800.00	315.00	3,115.00	186.90	46.73	689.44	120.00	1,043.07	2,071.94	3,115.00
Cobb	43	58.00	2,320.00	261.00	2,581.00	154.86	38.72	539.92	130.00	863.50	1,717.51	2,581.00
Clemente	45	64.00	2,560.00	480.00	3,040.00	182.40	45.60	668.44	140.00	1,036.44	2,003.56	3,040.00
DiMaggio	39	52.00	2,028.00	-	2,028.00	121.68	30.42	377.80	-	529.90	1,498.10	2,028.00
Griffey, Jr	48	64.00	2,560.00	768.00	3,328.00	199.68	49.92	749.08	150.00	1,148.68	2,179.32	3,328.00
Mantle			1,700.00	-	1,700.00	102.00	25.50	317.45	140.00	584.95	1,115.05		1,700.00
Robinson	38	53.00	2,014.00	-	2,014.00	120.84	30.21	387.32	150.00	688.37	1,325.63	2,014.00
Williams			2,100.00	-	2,100.00	126.00	31.50	426.64	145.00	729.14	1,370.86		2,100.00
Vaughn	48	64.00	2,560.00	768.00	3,328.00	199.68	49.92	770.08	60.00	1,079.68	2,248.32	3,328.00
Total			20,642.00	2,592.00	23,234.00	1,394.04	348.51	4,926.17	1,035.00	7,703.72	15,530.28	19,434.00	3,800.00

Answer 2.
Journal Entry
Date	Particulars	Dr. Amt	Cr. Amt.
1.	Sales Salaries Expense	19,434.00
	Office Salaries Expense	3,800.00
	Social Security Tax Payable		1,394.04
	Medicare Tax Payable		348.51
	Federal I Tax Payable		4,926.17
	US Saving Bonds Payable		1,035.00
	Salaries Payable		15,530.28
	(record the payroll for the week)