Summary Payroll Data In the following summary of data for a payroll period, some

Question

Summary Payroll Data

In the following summary of data for a payroll period, some amounts have been intentionally omitted:

a. Calculate the amounts omitted in lines (1), (3), (8), and (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.

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

Explanation / Answer

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.

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.

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