Question

Payroll Register

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

	Hours		Hourly		Weekly		Federal		Retirements
Employee	Worked		Rate		Salary		Income Tax		Savings
Aaron	45		$46				$502.55		$105
Cobb	42		32				295.84		45
Clemente	41		24				189.24		90
DiMaggio	37		34				264.18		85
Griffey, Jr.	44		42				405.72		40
Mantle					$2,280		547.20		75
Robinson	35		36				189.00		35
Williams					2,550		561.00		80
Vaughn	48		28				291.20		35

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%, 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. Round your intermediate calculations and final answers to the nearest whole cent (two decimal places).

Payroll for Week Ending December 9, 20Y8
		Earnings			Deductions Withheld					Paid		Accounts Debited
Name	Total Hours	Regular	Overtime	Total	Social Security Tax	Medicare Tax	Federal Income Tax	Retirement Savings	Total	Net Pay	Ck. No.	Sales Salaries Expense	Office Salaries Expense
Aaron	45	$	$	$	$	$	$502.55	$105	$	$	901	$
Cobb	42						295.84	45			902
Clemente	41						189.24	90			903
DiMaggio	37						264.18	85			904
Griffey, Jr.	44						405.72	40			905
Mantle							547.20	75			906		$
Robinson	35						189.00	35			907
Williams							561.00	80			908
Vaughn	48						291.20	35			909
Totals		$	$	$	$	$	$	$	$	$		$	$

2. Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. If an amount box does not require an entry, leave it blank.

Answer 1

Answer :

1) Payroll register of Throwback Industries Inc. for the week ended December 9, 20Y8.

Calculations	a	b	c	d = (b x c)	e = (a - c)	f = (b x e x 1.5)	g = (d + f)	h	i	j	k	l = (h+i+j+k)	m = (g - l)
Employee	Total hours	Hourly rate	Normal hours	Regular Earnings	overtime hours	Overtime Earnings	Total earnings	social security tax	Medicare tax	Federal income tax	Retirement savings	Total Deductions	Net pay	Sales salaries expense	Office salaries expense
Aaron	45	46	40	1840	5	345	2185	131.1	32.78	502.55	105	771.43	1413.58	2185
Cobb	42	32	40	1280	2	96	1376	82.56	20.64	295.84	45	444.04	931.96	1376
Clemente	41	24	40	960	1	36	996	59.76	14.94	189.24	90	353.94	642.06	996
DiMaggio	37	34	40	1360			1360	81.6	20.4	264.18	85	451.18	908.82	1360
Griffey, jr	44	42	40	1680	4	252	1932	115.92	28.98	405.72	40	590.62	1341.38	1932
Mantle							2280	136.8	34.2	547.2	75	793.2	1486.8		2280
Robinson	35	36	40	1440			1440	86.4	21.6	189	35	332	1108	1440
Williams							2550	153	38.25	561	80	832.25	1717.75		2550
Vaughn	48	28	40	1120	8	336	1456	87.36	21.84	291.2	35	435.4	1020.6	1456
Total							15575	934.5	233.63	3245.93	590	5004.06	10570.95	10,745.00	4,830.00

2)  Journal the entry to record the payroll for the week

Particulars	Debit	Credit
Sales salaries expense	10,745.00
Office salaries expense	4,830.00
Social security tax payable		934.50
Medicare tax payable		233.63
Employees federal income tax payable		3,245.93
Retirement savings deductions payable		590
Salaries payable		10,570.95