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 $105 Cobb 43 58 539.92 115 Clemente 45 64 668.44 125 DiMaggio 39 52 377.80 0 Griffey, Jr. 48 64 749.08 135 Mantle $1,700 317.45 125 Robinson 38 53 387.32 135 Williams 2,100 426.24 130 Vaughn 48 64 770.08 80 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

Payroll for Week Ending December 7, 2014
			Earnings			Deductions					Paid
Employee	Hours Worked	Hourly Rate	Regular (40 * Hourly Rate)	Overtime	Total	Social Security Tax @6% up to $118,500	Medicare Tax @ 1.5%	Federal Income Tax	U.S. Savings Bonds	Total	Net Pay
Aaron	43	70	2,800.00	315.00	3,115.00	186.90	46.73	689.44	135.00	1,058.07	2,056.94
Cobb	43	58	2,320.00	261.00	2,581.00	154.86	38.72	539.92	145.00	878.50	1,702.51
Clemente	45	64	2,560.00	480.00	3,040.00	182.40	45.60	668.44	155.00	1,051.44	1,988.56
DiMaggio	39	52	2,080.00	-	2,080.00	124.80	31.20	377.80	-	533.80	1,546.20
Griffey, Jr	48	64	2,560.00	768.00	3,328.00	199.68	49.92	749.08	165.00	1,163.68	2,164.32
Mantle	0	0	1,700.00	-	1,700.00	102.00	25.50	317.45	155.00	599.95	1,100.05
Robinson	38	53	2,014.00	-	2,014.00	120.84	30.21	387.32	165.00	703.37	1,310.63
Williams	0	0	2,100.00	-	2,100.00	126.00	31.50	426.24	160.00	743.74	1,356.26
Vaughn	48	64	3,072.00	768.00	3,840.00	230.40	57.60	770.08	50.00	1,108.08	2,731.92
					23,798.00	1,240.98	1,427.88	4,925.77	1,130.00	7,840.62	15,957.38

Salaries Expense              Dr           $23,798                  

Employees Income Tax Payable Cr            $4,925.77

Social Security Tax Payable          Cr            $1,427.88

Medicare Tax Payable                    Cr            $356.97

Bond Deductions Payable            Cr            $1,130

Salaries Payable                                                Cr            $15,957.38