Question

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

Employee	Hours Worked	Hourly Rate	Weekly Salary	Federal Income Tax	Retirement Savings
Aaron	43	$70		$689.44	$140
Cobb	43	58		539.92	150
Clemente	45	64		668.44	160
DiMaggio	39	52		377.80	0
Griffey, Jr.	48	64		749.08	170
Mantle			$1,700	317.45	160
Robinson	38	53		387.32	170
Williams			2,100	426.24	165
Vaughn	48	64		770.08	40

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 6.0%, 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 and round your intermediate calculations and final answers to the nearest whole cent (two decimal places).
2.	Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Throwback Industries General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Office Salaries Expense 521 Sales Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 710 Interest Expense

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

Payroll for Week Ending December 9, 20Y8

1			Earnings	Earnings	Earnings	Deductions	Deductions	Deductions	Deductions	Deductions	Paid	Paid	Account Debited	Account Debited
2	Employee	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
3	Aaron	43.00						$689.44	$140.00			#901
4	Cobb	43.00						539.92	150.00			#902
5	Clemente	45.00						668.44	160.00			#903
6	DiMaggio	39.00						377.80				#904
7	Griffey, Jr.	48.00						749.08	170.00			#905
8	Mantle							317.45	160.00			#906
9	Robinson	38.00						387.32	170.00			#907
10	Williams							426.24	165.00			#908
11	Vaughn	48.00						770.08	40.00			#909
12								$4,925.77	$1,155.00

2. Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
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7

Answer 1

Answer 1.
Employee	Total hours	Hourly Rate	Earnings			Deductions					Net Pay	Account Debited
			Regular	Overtime	Earnings Total	Social Security Tax (6%)	Medicare Tax (1.50%)	Fedederal I Tax	Retirement Savings	Total		Sales Salaries Expense	Office Salaries Expense
Aaron	43	70.00	2,800.00	315.00	3,115.00	186.90	46.73	689.44	140.00	1,063.07	2,051.94	3,115.00
Cobb	43	58.00	2,320.00	261.00	2,581.00	154.86	38.72	539.92	150.00	883.50	1,697.51	2,581.00
Clemente	45	64.00	2,560.00	480.00	3,040.00	182.40	45.60	668.44	160.00	1,056.44	1,983.56	3,040.00
DiMaggio	39	52.00	2,028.00	-	2,028.00	121.68	30.42	377.80	-	529.90	1,498.10	2,028.00
Griffey, Jr	48	64.00	2,560.00	768.00	3,328.00	199.68	49.92	749.08	170.00	1,168.68	2,159.32	3,328.00
Mantle			1,700.00	-	1,700.00	102.00	25.50	317.45	160.00	604.95	1,095.05		1,700.00
Robinson	38	53.00	2,014.00	-	2,014.00	120.84	30.21	387.32	170.00	708.37	1,305.63	2,014.00
Williams			2,100.00	-	2,100.00	126.00	31.50	426.24	165.00	748.74	1,351.26		2,100.00
Vaughn	48	64.00	2,560.00	768.00	3,328.00	199.68	49.92	770.08	40.00	1,059.68	2,268.32	3,328.00
Total			20,642.00	2,592.00	23,234.00	1,394.04	348.51	4,925.77	1,155.00	7,823.32	15,410.68	19,434.00	3,800.00

Answer 2.
Journal Entry
Date	Particulars	Dr. Amt	Cr. Amt.
1.	Sales Salaries Expense	19,434.00
	Office Salaries Expense	3,800.00
	Social Security Tax Payable		1,394.04
	Medicare Tax Payable		348.51
	Employee Federal Income Tax Payable		4,925.77
	Retirement Saving Deductions Payable		1,155.00
	Salaries Payable		15,410.68
	(record the payroll for the week)