PR 11-4B Payroll register
If the working papers correlating with this textbook are not used, omit Problem 11-4B. The payroll register for Ritchie Manufacturing Co. for the week ended September 14, 2012, is presented in the working papers.
Instructions
1. Journalize the entry to record the payroll for the week.
2. Journalize the entry to record the issuance of the checks to employees.
3. Journalize the entry to record the employer’s payroll taxes for the week. Assume the following tax rates: state unemployment, 3.4%; federal unemployment, 0.8%. Of the
earnings, $2,200 is subject to unemployment taxes.
4. Journalize the entry to record a check issued on September 17 to Second National Bank in payment of employees’ income taxes, $2,464.97, social security taxes, $1,753.92, and Medicare taxes, $438.50.
Answer:
1. 2012
Sept. 14 Sales Salaries Expense ............................... 6,398.00
Office Salaries Expense .............................. 4,140.00
Delivery Salaries Expense........................... 4,078.00
Social Security Tax Payable .................. 876.96
Medicare Tax Payable ............................ 219.25
Employees Income Tax Payable............ 2,464.97
Medical Insurance Payable .................... 1,023.00
Salaries Payable ..................................... 10,031.82
2. Sept. 14 Salaries Payable........................................... 10,031.82
Cash......................................................... 10,031.82
3. Sept. 14 Payroll Tax Expense .................................... 1,188.61
Social Security Tax Payable .................. 876.96
Medicare Tax Payable ............................ 219.25
State Unemployment Tax Payable ........ 74.80*
Federal Unemployment Tax Payable..... 17.60**
*$2,200 × 3.4%
**$2,200 × 0.8%
4. Sept. 17 Employees Income Tax Payable................. 2,464.97
Social Security Tax Payable........................ 1,753.92
Medicare Tax Payable.................................. 438.50
Cash......................................................... 4,657.39
Instructions
1. Journalize the entry to record the payroll for the week.
2. Journalize the entry to record the issuance of the checks to employees.
3. Journalize the entry to record the employer’s payroll taxes for the week. Assume the following tax rates: state unemployment, 3.4%; federal unemployment, 0.8%. Of the
earnings, $2,200 is subject to unemployment taxes.
4. Journalize the entry to record a check issued on September 17 to Second National Bank in payment of employees’ income taxes, $2,464.97, social security taxes, $1,753.92, and Medicare taxes, $438.50.
Answer:
1. 2012
Sept. 14 Sales Salaries Expense ............................... 6,398.00
Office Salaries Expense .............................. 4,140.00
Delivery Salaries Expense........................... 4,078.00
Social Security Tax Payable .................. 876.96
Medicare Tax Payable ............................ 219.25
Employees Income Tax Payable............ 2,464.97
Medical Insurance Payable .................... 1,023.00
Salaries Payable ..................................... 10,031.82
2. Sept. 14 Salaries Payable........................................... 10,031.82
Cash......................................................... 10,031.82
3. Sept. 14 Payroll Tax Expense .................................... 1,188.61
Social Security Tax Payable .................. 876.96
Medicare Tax Payable ............................ 219.25
State Unemployment Tax Payable ........ 74.80*
Federal Unemployment Tax Payable..... 17.60**
*$2,200 × 3.4%
**$2,200 × 0.8%
4. Sept. 17 Employees Income Tax Payable................. 2,464.97
Social Security Tax Payable........................ 1,753.92
Medicare Tax Payable.................................. 438.50
Cash......................................................... 4,657.39
