The following data for Throwback Industries Inc. relate to the payroll for the w

Question

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

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.

Employee Hours Worked Hourly Rate Weekly Salary Federal Income Tax Retirement Savings Aaron 43 $70 $689.44 $120 Cobb 43 58 539.92 130 Clemente 45 64 668.44 140 DiMaggio 39 52 377.80 0 Griffey, Jr. 48 64 749.08 150 Mantle $1,700 317.45 140 Robinson 38 53 387.32 150 Williams 2,100 426.24 145 Vaughn 48 64 770.08 80

Explanation / Answer

Solution:

1) Preparing a Payroll Register for Throwback Industries:

Throwback Industries Inc.

Payroll Register

For the week ended Dec 9 20Y8

2) Preparing the Journal Entry to Record the Payroll for the Week:

Throwback Industries Inc.

Payroll Register

For the week ended Dec 9 20Y8

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 US Saving Bonds 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                120.00    1,043.07          2,071.94                 3,115.00 Cobb                      43                58.00             2,320.00                  261.00           2,581.00                   154.86                               38.72                539.92                130.00       863.50          1,717.51                 2,581.00 Clemente                      45                64.00             2,560.00                  480.00           3,040.00                   182.40                               45.60                668.44                140.00    1,036.44          2,003.56                 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                150.00    1,148.68          2,179.32                 3,328.00 Mantle             1,700.00                           -             1,700.00                   102.00                               25.50                317.45                140.00       584.95          1,115.05                1,700.00 Robinson                      38                53.00             2,014.00                           -             2,014.00                   120.84                               30.21                387.32                150.00       688.37          1,325.63                 2,014.00 Williams             2,100.00                           -             2,100.00                   126.00                               31.50                426.64                145.00       729.14          1,370.86                2,100.00 Vaughn                      48                64.00             2,560.00                  768.00           3,328.00                   199.68                               49.92                770.08 80.00    1,099.68          2,228.32                 3,328.00 Total           20,642.00              2,592.00         23,234.00                1,394.04                             348.51             4,926.17             1,055.00    7,723.72 15,510.28               19,434.00                3,800.00

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