Ramirez Company has the following data for the weekly payroll ending January 31.
ID: 2471842 • Letter: R
Question
Ramirez Company has the following data for the weekly payroll ending January 31. Hours Employee M T W T F S Hourly Rate Fed Income Tax Withholding Health Ins L. Helton 8 8 9 8 10 3 $ 12.00 $ 34 $ 10 R. Kenseth 8 8 8 8 8 2 14.00 37 25 D. Tavaras 9 10 8 8 9 0 15.00 58 25 Employees are paid 1 1/2 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% on the first $117,000 of gross earnings. Ramirez Company is subject to 5.4% state unemployment tax and .08% federal enemployment taxes on the first $7,000 of gross earnings. Instructions (a) Prepare the payroll register for the weekly payroll. (b) Prepare the journal entries to record the payroll and Ramirez's payroll tax expense. (a) Ramirez Company Payroll Register For the week ending January 31, 2017 Earnings Deductions Employee Total Hours Regular Overtime Gross Pay FICA Taxes Fed Income Taxes Health Ins Total Net Pay L. Helton $ 34.00 $ 10.00 $ 44.00 R. Kenseth 37.00 25.00 62.00 D. Tavaras 58.00 25.00 83.00 Totals $ - $ - $ - $ - $129.00 $ 60.00 $189.00 $ - E11-11 (b) Debit Credit Jan. 31 Select Account Select Account Fed Income Taxes Payable 129.00 Health Ins Payable 60.00 Select Account 31 Select Account Select Account Select Account Select Account Ramirez Company has the following data for the weekly payroll ending January 31. Hours Employee M T W T F S Hourly Rate Fed Income Tax Withholding Health Ins L. Helton 8 8 9 8 10 3 $ 12.00 $ 34 $ 10 R. Kenseth 8 8 8 8 8 2 14.00 37 25 D. Tavaras 9 10 8 8 9 0 15.00 58 25 Employees are paid 1 1/2 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% on the first $117,000 of gross earnings. Ramirez Company is subject to 5.4% state unemployment tax and .08% federal enemployment taxes on the first $7,000 of gross earnings. Instructions (a) Prepare the payroll register for the weekly payroll. (b) Prepare the journal entries to record the payroll and Ramirez's payroll tax expense. (a) Ramirez Company Payroll Register For the week ending January 31, 2017 Earnings Deductions Employee Total Hours Regular Overtime Gross Pay FICA Taxes Fed Income Taxes Health Ins Total Net Pay L. Helton $ 34.00 $ 10.00 $ 44.00 R. Kenseth 37.00 25.00 62.00 D. Tavaras 58.00 25.00 83.00 Totals $ - $ - $ - $ - $129.00 $ 60.00 $189.00 $ - E11-11 (b) Debit Credit Jan. 31 Select Account Select Account Fed Income Taxes Payable 129.00 Health Ins Payable 60.00 Select Account 31 Select Account Select Account Select Account Select AccountExplanation / Answer
Ramirez Company
Payroll Register
For the week ending January 31, 2017
Earnings
Deductions
Net Pay
Employee
Total Hours
Regular
(40*$12)
Overtime
Gross Pay
FICA Taxes
Fed Income Tax
Health Insurance
Total
L.Helton
46
480
108
(6*$18)
588
44.22
($588-10)*7.65%
34
10
88.22
499.78
R.Kenseth
42
480
42
(2*$21)
522
38.02
($522-25)*7.65%
37
25
100.02
421.98
D.Tavaras
44
480
90
(4*$22.5)
570
41.69
($570-25)*7.65%
58
25
124.69
445.31
Total
1440
240
1680
123.93
129
60
312.93
FICA taxes = (Gross pay - Health insurance) * 7.65%
Date
Account Head
Debit
Credit
Jan-31
Salaries Expenses
1680
FICA Tax Payable
123.93
Federal Income tax withholding payable
129
Health Insurance Expenses
60
Net Payroll Payable
1367.07
Jan-31
Net Payroll payable
1367.07
Cash
1367.07
Jan-31
FICA Tax Payable
123.93
Federal Income tax withholding payable
129
Health Insurance Expenses
60
Cash
312.93
Ramirez Company
Payroll Register
For the week ending January 31, 2017
Earnings
Deductions
Net Pay
Employee
Total Hours
Regular
(40*$12)
Overtime
Gross Pay
FICA Taxes
Fed Income Tax
Health Insurance
Total
L.Helton
46
480
108
(6*$18)
588
44.22
($588-10)*7.65%
34
10
88.22
499.78
R.Kenseth
42
480
42
(2*$21)
522
38.02
($522-25)*7.65%
37
25
100.02
421.98
D.Tavaras
44
480
90
(4*$22.5)
570
41.69
($570-25)*7.65%
58
25
124.69
445.31
Total
1440
240
1680
123.93
129
60
312.93
FICA taxes = (Gross pay - Health insurance) * 7.65%
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