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	$65,400
	3. Total earnings	?
Deductions:
	4. Social security tax	26,220
	5. Medicare tax	6,555
	6. Income tax withheld	111,200
	7. Medical insurance	15,000
	8. Union dues	?
	9. Total deductions	162,000
	10. Net amount paid	275,000
Accounts debited:
	11. Factory Wages	231,600
	12. Sales Salaries	?
	13. Office Salaries	87,400

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)	Earnings:
		1. At regular rate	$371,600	(3) - (2)
		2. At overtime rate	$65,400
		3. Total earnings	437,000	(9) + (10)
	Deductions:
		4. Social security tax	26,220
		5. Medicare tax	6,555
		6. Income tax withheld	111,200
		7. Medical insurance	15,000
		8. Union dues	3,025	(9)-(4)-(5)-(6)-(7)
		9. Total deductions	162,000
		10. Net amount paid	275,000
	Accounts debited:
		11. Factory Wages	231,600
		12. Sales Salaries	118,000	(3) - (11) - (12)
		13. Office Salaries	87,400
	(1)	$                                       371,600
	(3)	$                                       437,000
	(8)	$                                           3,025
	(12)	$                                       118,000
(b)		Sales Salaries expense	$ 118,000
		Factory Wage expense	$ 231,600
		Office Salaries expense	$     87,400
		Employees Income Tax payable		$                111,200
		Social Security Tax Payable		$                  26,220
		Medicare tax payable		$                     6,555
		Medical insurance payable		$                  15,000
		Union dues payable		$                     3,025
		Salaries Payable		$                275,000
(c )		salaries payable	$ 275,000
		Cash		$                275,000