EX 11-10 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 $135,000 3. Total earnings ? Deductions: 4. Social security tax 54,000 5. Medicare tax 13,500 6. Income tax withheld 225,000 7. Medical insurance 31,500 8. Union dues ? 9. Total deductions 335,250 10. Net amount paid 564,750 Accounts debited: 11. Factory Wages 475,000 12. Sales Salaries ? 13. Offi ce Salaries 200,000
a. Calculate the amounts omitted in lines (1), (3), (8), and (12).
b. Journalize the entry to record the payroll accrual.
c. Journalize the entry to record the payment of the payroll.
Answer:
a. Summary: (1) $765,000; (3) $900,000; (8) $11,250; (12) $225,000 Net amount paid .................................................... $564,750 Total deductions.................................................... 335,250 (3) Total earnings........................................................ $900,000 Overtime................................................................. 135,000 (1) Regular................................................................... $765,000 Total deductions.................................................... $335,250 Social security tax................................................. $ 54,000 Medicare tax........................................................... 13,500 Income tax withheld.............................................. 225,000 Medical insurance ................................................. 31,500 324,000 (8) Union dues............................................................. $ 11,250 Total earnings........................................................ $900,000 Factory wages........................................................ $475,000 Office salaries........................................................ 200,000 675,000 (12) Sales salaries......................................................... $225,000
b. Factory Wages Expense ............................................... 475,000 Sales Salaries Expense................................................. 225,000 Office Salaries Expense................................................ 200,000 Social Security Tax Payable.................................... 54,000 Medicare Tax Payable.............................................. 13,500 Employees Income Tax Payable............................. 225,000 Medical Insurance Payable...................................... 31,500 Union Dues Payable................................................. 11,250 Salaries Payable....................................................... 564,750
c. Salaries Payable............................................................ 564,750 Cash .......................................................................... 564,750
Earnings: 1. At regular rate ? 2. At overtime rate $135,000 3. Total earnings ? Deductions: 4. Social security tax 54,000 5. Medicare tax 13,500 6. Income tax withheld 225,000 7. Medical insurance 31,500 8. Union dues ? 9. Total deductions 335,250 10. Net amount paid 564,750 Accounts debited: 11. Factory Wages 475,000 12. Sales Salaries ? 13. Offi ce Salaries 200,000
a. Calculate the amounts omitted in lines (1), (3), (8), and (12).
b. Journalize the entry to record the payroll accrual.
c. Journalize the entry to record the payment of the payroll.
Answer:
a. Summary: (1) $765,000; (3) $900,000; (8) $11,250; (12) $225,000 Net amount paid .................................................... $564,750 Total deductions.................................................... 335,250 (3) Total earnings........................................................ $900,000 Overtime................................................................. 135,000 (1) Regular................................................................... $765,000 Total deductions.................................................... $335,250 Social security tax................................................. $ 54,000 Medicare tax........................................................... 13,500 Income tax withheld.............................................. 225,000 Medical insurance ................................................. 31,500 324,000 (8) Union dues............................................................. $ 11,250 Total earnings........................................................ $900,000 Factory wages........................................................ $475,000 Office salaries........................................................ 200,000 675,000 (12) Sales salaries......................................................... $225,000
b. Factory Wages Expense ............................................... 475,000 Sales Salaries Expense................................................. 225,000 Office Salaries Expense................................................ 200,000 Social Security Tax Payable.................................... 54,000 Medicare Tax Payable.............................................. 13,500 Employees Income Tax Payable............................. 225,000 Medical Insurance Payable...................................... 31,500 Union Dues Payable................................................. 11,250 Salaries Payable....................................................... 564,750
c. Salaries Payable............................................................ 564,750 Cash .......................................................................... 564,750
