Question

Requirements:

Record the deduction for group insurance.

Record the health insurance deduction.

Record the check number assigned to each employee.

Compute and record the net pay for each employee.

Total the input columns on the Employee Payroll register.

On Employer Register, enter total gross earnings.

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.

Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all workers.

Employee Benefits

Employee Benefits

The table below lists the employee contributions to Group Insurance and Health Insurance. Also, a check number has been assigned to each employee. Note that some employees are not yet eligible for Group Insurance coverage under the company plan.

KIPLEY COMPANY, INC. Insurance Deduction Register
Name	GRP. INS.	HEALTH INS.	CK. NO.
Carson, F.	$0.85	$1.65	313
Wilson, W.	0.85	1.65	314
Utley, H.	0.85	1.65	315
Fife, L.	0.85	1.65	316
Smith, L.		1.65	317
Fay, G.	0.85	1.65	318
Robey, G.	0.85	1.65	319
Schork, T.		1.65	320
Hardy, B.	0.85	1.65	321
Kipley, C.	0.85	1.65	322

Payroll Register

Completing the Payroll Register

The Employee Payroll Register presents all the computations previously performed as it applies to this payroll period.

Complete the following steps (if an field should be blank, leave it blank):

Record the amount to be withheld for group insurance.

Record the amount to be withheld for health insurance.

Each worker is to be paid by check. Assign check numbers provided to the correct employee..

Compute the net pay for each employee.

Total the input columns.

KIPLEY COMPANY, INC. Payroll Register For Period Ending January 8, 20--
	EARNINGS	DEDUCTIONS									NET PAY
Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
Carson, F.	$700.00	$43.40	$10.15	$75.00	$21.49	$0.49	$21.00	$20.00	$	$		$
Wilson, W.	897.04	55.62	13.01	118.00	27.54	0.63	26.91	50.00
Utley, H.	678.75	42.08	9.84	31.00	20.84	0.48	20.36	40.00
Fife, L.	877.10	54.38	12.72	35.00	26.93	0.61	26.31	50.00
Smith, L.	790.00	48.98	11.46	77.00	24.25	0.55	23.70	20.00
Fay, G.	539.15	33.43	7.82	10.00	16.55	0.38	16.17	40.00
Robey, G.	623.08	38.63	9.03	---	19.13	0.44	18.69	50.00
Schork, T.	773.08	47.93	11.21	80.00	23.73	0.54	23.19	60.00
Hardy, B.	666.11	41.30	9.66	8.00	20.45	0.47	19.98	30.00
Kipley	1,000.00	62.00	14.50	21.00	30.70	0.70	30.00	80.00
Totals		$467.75	$109.40	$455.00	$231.61	$5.29	$226.31	$440.00			----

Employer Register

Complete the following:

Record the total gross earnings.

KIPLEY COMPANY, INC. Employer Register Payroll Taxes
	Taxable Earnings	OASDI	HI	FUTA	SUTA
Totals	$	$467.75	$109.39	$45.27	$277.52

Feedback

Incorrect

Journal Entry: Recording Payroll

Journal Entry: Recording Payroll

Complete the following:

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.

Date	Account	Debit	Credit
20-- Jan. 12	Wages and Salaries Expense
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	Employees FIT Payable
	Employees SIT Payable
	Employees SUTA Payable
	Employees CIT Payable
	Simple Deductions Payable
	Group Insurance Premiums Collected
	Health Insurance Premiums Collected
	Salaries Payable
	To record payroll.
20-- Jan. 12	Payroll Taxes Expense
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	FUTA Taxes Payable
	SUTA Taxes Payable
	To record payroll taxes.

Journal Entry: Payroll Distribution

Complete the following:

Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all workers.

Date	Account	Debit	Credit
20-- Jan. 14	Salaries Payable
	Cash

Answer 1

	KIPLEY COMPANY, INC.
	Payroll Register
	For Period Ending January 8, 20--
		EARNINGS	DEDUCTIONS									NET PAY
	Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
	Carson, F.	$700.00	$43.40	$10.15	$75.00	$21.49	$0.49	$21.00	$20.00	$0.85	$1.65	313	$505.97
	Wilson, W.	897.04	55.62	13.01	118	27.54	0.63	26.91	50	0.85	1.65	314	$602.83
	Utley, H.	678.75	42.08	9.84	31	20.84	0.48	20.36	40	0.85	1.65	315	$511.65
	Fife, L.	877.1	54.38	12.72	35	26.93	0.61	26.31	50	0.85	1.65	316	$668.65
	Smith, L.	790	48.98	11.46	77	24.25	0.55	23.7	20		1.65	317	$582.41
	Fay, G.	539.15	33.43	7.82	10	16.55	0.38	16.17	40	0.85	1.65	318	$412.30
	Robey, G.	623.08	38.63	9.03	0	19.13	0.44	18.69	50	0.85	1.65	319	$484.66
	Schork, T.	773.08	47.93	11.21	80	23.73	0.54	23.19	60		1.65	320	$524.83
	Hardy, B.	666.11	41.3	9.66	8	20.45	0.47	19.98	30	0.85	1.65	321	$533.75
	Kipley	1,000.00	62	14.5	21	30.7	0.7	30	80	0.85	1.65	322	$758.60
	Totals	$7,544.31	$467.75	$109.40	$455.00	$231.61	$5.29	$226.31	$440.00	$6.80	$16.50	----	$5,585.65
	Employer Register
	Complete the following:
	Record the total gross earnings.
	KIPLEY COMPANY, INC.
	Employer Register
	Payroll Taxes
		Taxable Earnings	OASDI	HI	FUTA	SUTA
	Totals	7544.31	$467.75	$109.39	$45.27	$277.52
3)	Date	Account	Debit	Credit
	20-- Jan. 12	Wages and Salaries Expense	7544.31
		FICA Taxes Payable-OASDI		467.75
		FICA Taxes Payable-HI		109.40
		Employees FIT Payable		455.00
		Employees SIT Payable		231.61
		Employees SUTA Payable		5.29
		Employees CIT Payable		226.31
		Simple Deductions Payable		440.00
		Group Insurance Premiums Collected		6.80
		Health Insurance Premiums Collected		16.50
		Salaries Payable		5,585.65
		To record payroll.
	20-- Jan. 12	Payroll Taxes Expense	899.93
		FICA Taxes Payable-OASDI		467.75
		FICA Taxes Payable-HI		109.39
		FUTA Taxes Payable		45.27
		SUTA Taxes Payable		277.52
		To record payroll taxes.
	Date	Account	Debit	Credit
	20-- Jan. 14	Salaries Payable	5585.65
		Cash		5585.65