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	$73,500
	3. Total earnings	?
Deductions:
	4. Social security tax	29,460
	5. Medicare tax	7,365
	6. Income tax withheld	125,000
	7. Medical insurance	16,900
	8. Union dues	?
	9. Total deductions	182,000
	10. Net amount paid	309,000
Accounts debited:
	11. Factory Wages	260,200
	12. Sales Salaries	?
	13. Office Salaries	98,200

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

Qa)

Line 3: Total earnings = Total deductions + Net amount paid

                                    = 182,000 + 309,000

                                    = $491,000 (Answer)

Line 1: At regular rate = Total earnings – At overtime rate

                                    = 491,000 – 73,500

                                    = $417,500 (Answer)

Line 8: Union dues = Total deduction – Social security tax – Medicare tax – Income tax withheld – Medical insurance

                                = 182,000 – 29,460 – 7,365 – 125,000 – 16,900

                                = $3,275 (Answer)

Line 12: Sales salaries = Total earnings – Factory wages – Office salaries

                        = 491,000 – 260,200 – 98,200

                        = 132,600 (Answer)

Qb)

Journal

Date	Account titles & explanations	P.ref	Debit	Credit
	Factory wages		$260,200
	Sales salaries		$132,600
	Office salaries		$98,200
	Social security tax			$29,460
	Medicare tax			$7,365
	Income tax withheld			$125,000
	Medical insurance			$16,900
	Union dues			$3,275
	Salaries and wages payable			$309,000
	To record salaries and wages expense and payroll withholding.

Qc)

Journal

Date	Account titles & explanations	P.ref	Debit	Credit
	Salaries and wages payable		$309,000
	Cash			$309,000
	To record payment of salaries and wages to factory workers, sales staffs, and office staffs.