Question

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 20Y8:

Employee	Hours Worked	Hourly Rate	Weekly Salary	Federal Income Tax	Retirement Savings
Aaron	43	$70		$689.44	$100
Cobb	43	58		539.92	110
Clemente	45	64		668.44	120
DiMaggio	39	52		377.80	0
Griffey, Jr.	48	64		749.08	130
Mantle			$1,700	317.45	120
Robinson	38	53		387.32	130
Williams			2,100	426.24	125
Vaughn	48	64		770.08	40

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, 20Y8. 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

Ans:

Employee	Hours Worked	Normal Hours	Overtime Hours	Hourly rate	Normal earnings	Overtime Earnings	Total Earnings
Aaron	43	40	3	70	2,800	315	3,115
Cobb	43	40	3	58	2,320	261	2,581
Clemente	45	40	5	64	2,560	480	3,040
DiMaggio	39	39	-	52	2,028	0	2,028
Griffey, Jr	48	40	8	64	2,560	768	3,328
Mantle						0	1,700
Robinson	38	38	-	53	2,014	0	2,014
Williams						0	2,100
Vaughn	48	40	8	64	2,560	768	3,328
Total							23,234

B). Calculation of taxes and net pay

Employee	Federal income Tax	UK Savings bond	Social Security Tax(Total earnings*6%)	Medicare Tax( Total earnings *1.5%)	Total Deductions	Net Payable(Total earnings-deductions)
Aaron	689.44	100	186.90	46.725	1023.065	2,092
Cobb	539.92	110	154.86	38.715	843.495	1,738
Clemente	668.44	120	182.40	45.600	1016.44	2,024
DiMaggio	377.80	0	121.68	30.420	529.9	1,498
Griffey Jr	749.08	130	199.68	49.920	1128.68	2,199
Mantle	317.45	120	102	25.500	564.95	1,135
Robinson	387.32	130	120.84	31.210	669.37	1,345
Williams	426.24	125	126	31.500	708.74	1,391
Vaughn	770.08	40	199.68	49.920	1059.68	2,268
Total						15,690

2. Journal entry

date	Account title and explanation	Debit($)	Credit($)
	Salary expense	23,234
	Federal income Tax		4,925.77
	UK Savings bonds		875
	Social Security Tax		1,394.40
	Medicare Tax		349.51
	Salary Payable		15,690
	(to record Payroll)