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	$70,900
	3. Total earnings	?
Deductions:
	4. Social security tax	28,380
	5. Medicare tax	7,095
	6. Income tax withheld	120,500
	7. Medical insurance	16,300
	8. Union dues	?
	9. Total deductions	175,000
	10. Net amount paid	$298,000
Accounts debited:
	11. Factory Wages	250,700
	12. Sales Salaries	?
	13. Office Salaries	94,600

a. Calculate the amounts omitted in lines (1), (3), (8), and (12). Assume that the social security tax rate was 6.0% and the Medicare tax rate was 1.5%.

(1)	$
(3)	$
(8)	$
(12)	$

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b. Journalize the entry to record the payroll accrual. If an amount box does not require an entry, leave it blank.

	Factory Wages Expense
	Sales Salaries Expense
	Office Salaries Expense
	Social Security Tax Payable
	Medicare Tax Payable
	Employees Income Tax Payable
	Medical Insurance Payable
	Union Dues Payable
	Salaries Payable

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c. Journalize the entry to record the payment of the payroll.

Answer 1

a
(1)	402100
(3)	473000
(8)	2725
(12)	127700
b
Factory wages expense	250700
Sales salaries expense	127700
Office Salaries expense	94600
Social security tax payable		28380
Medicare tax payable		7095
Employees income tax payable		120500
Medical insurance payable		16300
Union dues payable		2725
Salaries payable		298000
c
Salaries payable	298000
Cash		298000
Workings:
Net amount paid	298000
Add: Total deductions	175000
Total earnings	473000
Total earnings	473000
Less: At overtime rate	70900
At regular rate	402100
Total deductions	175000
Less:
Social security tax	28380
Medicare tax	7095
Income tax withheld	120500
Medical insurance	16300
= Union dues	2725
Total earnings	473000
Less:
Factory Wages	250700
Office Salaries	94600
= Sales Salaries	127700