Question

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	$66,000
3. Total earnings	?
Deductions:
4. Social security tax	29,160
5. Medicare tax	7,290
6. Income tax withheld	134,000
7. Medical insurance	17,010
8. Union dues	?
9. Total deductions	194,210
10. Net amount paid	291,790
Accounts debited:
11. Factory Wages	260,000
12. Sales Salaries	?
13. Office Salaries	120,000

	A. Calculate the amounts omitted in lines (1), (3), (8), and (12). (1) (3) (8) (12)
	B. On December 19, journalize the entry to record the payroll accrual.* C. On December 20, journalize the entry to record the payment of the payroll. *Refer to the Chart of Accounts for exact wording of account titles. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11

Answer 1

	a
	1	420000
	3	486000
	8	6750
	12	106000
	b
Date	DESCRIPTION	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
	Factory wages expense	260000				↓
	Sales salaries expense	106000				↓
	Office Salaries expense	120000				↓
	Social security tax payable		29160		↑
	Medicare tax payable		7290		↑
	Employees income tax payable		134000		↑
	Medical insurance payable		17010		↑
	Union dues payable		6750		↑
	Salaries payable		291790		↑
	c
	Salaries payable	291790			↓
	Cash		291790	↓
	Workings:
	Net amount paid	291790
	Add: Total deductions	194210
	Total earnings	486000
	Total earnings	486000
	Less: At overtime rate	66000
	At regular rate	420000
	Total deductions	194210
	Less:
	Social security tax	29160
	Medicare tax	7290
	Income tax withheld	134000
	Medical insurance	17010
	= Union dues	6750
	Total earnings	486000
	Less:
	Factory Wages	260000
	Office Salaries	120000
	= Sales Salaries	106000