Payroll Register and Payroll Journal Entry

Mary Losch operates a travel agency called Mary’s Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal.

Mary’s Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20—, are given. Employees are paid 1½ times the regular rate for working over 40 hours a week.

Name No. of
Allowances Marital
Status Total Hours
Worked Mar. 16–22
Rate Total Earnings
Jan. 1–Mar. 15

Bacon, Andrea 4 M 44 $14.00 $6,300.00

Cole, Andrew 1 S 40 15.00 6,150.00

Hicks, Melvin 3 M 44 13.50 5,805.00

Leung, Cara 1 S 36 14.00 5,600.00

Melling, Melissa 2 M 40 14.50 5,945.00

Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agency’s credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan.

Mary’s Luxury Travel’s payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423.

Required:

1. Prepare a payroll register for Mary’s Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns.

If required, round your answers to the nearest cent.

Payroll Register for Period Ended March 22 20--

Earnings Taxable Earnings Deductions

Name No. of Allow. Marit. Status
Regular
Overtime
Total Cumulative Total Unemploy. Comp. Social Security Federal Income Tax Social Security Tax Medicare Tax
City Tax Health Insurance Other
Total Net Pay Ck. No.

Bacon, Andrea 4 M fill in the blank 0c66cbf1efe9fa8_11 Credit Union fill in the blank 0c66cbf1efe9fa8_13 fill in the blank 0c66cbf1efe9fa8_14 fill in the blank 0c66cbf1efe9fa8_15 fill in the blank 0c66cbf1efe9fa8_16

Cole, Andrew 1 S fill in the blank 0c66cbf1efe9fa8_26 Bonds fill in the blank 0c66cbf1efe9fa8_28 fill in the blank 0c66cbf1efe9fa8_29 fill in the blank 0c66cbf1efe9fa8_30 fill in the blank 0c66cbf1efe9fa8_31

Hicks, Melvin 3 M fill in the blank 0c66cbf1efe9fa8_42 Bonds fill in the blank 0c66cbf1efe9fa8_44 fill in the blank 0c66cbf1efe9fa8_45 fill in the blank 0c66cbf1efe9fa8_46 fill in the blank 0c66cbf1efe9fa8_47

Leung, Cara 1 S fill in the blank 0c66cbf1efe9fa8_54 fill in the blank 0c66cbf1efe9fa8_55 fill in the blank 0c66cbf1efe9fa8_56 fill in the blank 0c66cbf1efe9fa8_57 Credit Union fill in the blank 0c66cbf1efe9fa8_59 fill in the blank 0c66cbf1efe9fa8_60 fill in the blank 0c66cbf1efe9fa8_61 fill in the blank 0c66cbf1efe9fa8_62

Melling, Melissa 2 M fill in the blank 0c66cbf1efe9fa8_69 fill in the blank 0c66cbf1efe9fa8_70 fill in the blank 0c66cbf1efe9fa8_71 fill in the blank 0c66cbf1efe9fa8_72 fill in the blank 0c66cbf1efe9fa8_73 fill in the blank 0c66cbf1efe9fa8_74

fill in the blank 0c66cbf1efe9fa8_82 fill in the blank 0c66cbf1efe9fa8_83 fill in the blank 0c66cbf1efe9fa8_84 fill in the blank 0c66cbf1efe9fa8_85 fill in the blank 0c66cbf1efe9fa8_86 fill in the blank 0c66cbf1efe9fa8_87 fill in the blank 0c66cbf1efe9fa8_88

Feedback

Enter earnings for each employee in the first six columns and calculate deductions based on the information in the problem data. Select the type of other deduction, calculate net pay, and assign a check number. Be sure to use the correct marital status table and the correct column and row to determine federal income tax. Total the columns and verify that the amounts calculate across.

2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll.

Page: 1

DATE ACCOUNT TITLE DOC.
NO. POST.
REF. DEBIT CREDIT

1 20--
Mar. 24 Wages and Salaries Expense fill in the blank e8d6a3f93050039_2 fill in the blank e8d6a3f93050039_3 1

2 Employee Federal Income Tax Payable fill in the blank e8d6a3f93050039_5 fill in the blank e8d6a3f93050039_6 2

3 Social Security Tax Payable fill in the blank e8d6a3f93050039_8 fill in the blank e8d6a3f93050039_9 3

4 Medicare Tax Payable fill in the blank e8d6a3f93050039_11 fill in the blank e8d6a3f93050039_12 4

5 Credit Union Expense fill in the blank e8d6a3f93050039_14 fill in the blank e8d6a3f93050039_15 5

6 Health Insurance Premiums Payable fill in the blank e8d6a3f93050039_17 fill in the blank e8d6a3f93050039_18 6

7 City Tax Expense fill in the blank e8d6a3f93050039_20 fill in the blank e8d6a3f93050039_21 7

8 Employee Income Tax Expense fill in the blank e8d6a3f93050039_23 fill in the blank e8d6a3f93050039_24 8

9 Cash fill in the blank e8d6a3f93050039_26 fill in the blank e8d6a3f93050039_27 9

10 Payroll for week ended March 22 10

Question

Payroll Register and Payroll Journal Entry

Mary Losch operates a travel agency called Mary’s Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal.

Mary’s Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20—, are given. Employees are paid 1½ times the regular rate for working over 40 hours a week.

Name	No. of Allowances	Marital Status	Total Hours Worked Mar. 16–22	Rate	Total Earnings Jan. 1–Mar. 15
Bacon, Andrea	4	M	44	$14.00	$6,300.00
Cole, Andrew	1	S	40	15.00	6,150.00
Hicks, Melvin	3	M	44	13.50	5,805.00
Leung, Cara	1	S	36	14.00	5,600.00
Melling, Melissa	2	M	40	14.50	5,945.00

Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agency’s credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan.

Mary’s Luxury Travel’s payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423.

Required:

1. Prepare a payroll register for Mary’s Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns.

If required, round your answers to the nearest cent.

			Payroll Register for Period Ended	March 22	20--
			Earnings	Taxable Earnings	Deductions
Name	No. of Allow.	Marit. Status	Regular	Overtime	Total	Cumulative Total	Unemploy. Comp.	Social Security	Federal Income Tax	Social Security Tax	Medicare Tax	City Tax	Health Insurance	Other	Total	Net Pay	Ck. No.
Bacon, Andrea	4	M											fill in the blank 0c66cbf1efe9fa8_11	Credit Union	fill in the blank 0c66cbf1efe9fa8_13	fill in the blank 0c66cbf1efe9fa8_14	fill in the blank 0c66cbf1efe9fa8_15	fill in the blank 0c66cbf1efe9fa8_16
Cole, Andrew	1	S											fill in the blank 0c66cbf1efe9fa8_26	Bonds	fill in the blank 0c66cbf1efe9fa8_28	fill in the blank 0c66cbf1efe9fa8_29	fill in the blank 0c66cbf1efe9fa8_30	fill in the blank 0c66cbf1efe9fa8_31
Hicks, Melvin	3	M											fill in the blank 0c66cbf1efe9fa8_42	Bonds	fill in the blank 0c66cbf1efe9fa8_44	fill in the blank 0c66cbf1efe9fa8_45	fill in the blank 0c66cbf1efe9fa8_46	fill in the blank 0c66cbf1efe9fa8_47
Leung, Cara	1	S								fill in the blank 0c66cbf1efe9fa8_54	fill in the blank 0c66cbf1efe9fa8_55	fill in the blank 0c66cbf1efe9fa8_56	fill in the blank 0c66cbf1efe9fa8_57	Credit Union	fill in the blank 0c66cbf1efe9fa8_59	fill in the blank 0c66cbf1efe9fa8_60	fill in the blank 0c66cbf1efe9fa8_61	fill in the blank 0c66cbf1efe9fa8_62
Melling, Melissa	2	M								fill in the blank 0c66cbf1efe9fa8_69	fill in the blank 0c66cbf1efe9fa8_70	fill in the blank 0c66cbf1efe9fa8_71				fill in the blank 0c66cbf1efe9fa8_72	fill in the blank 0c66cbf1efe9fa8_73	fill in the blank 0c66cbf1efe9fa8_74
										fill in the blank 0c66cbf1efe9fa8_82	fill in the blank 0c66cbf1efe9fa8_83	fill in the blank 0c66cbf1efe9fa8_84	fill in the blank 0c66cbf1efe9fa8_85		fill in the blank 0c66cbf1efe9fa8_86	fill in the blank 0c66cbf1efe9fa8_87	fill in the blank 0c66cbf1efe9fa8_88

Feedback

Enter earnings for each employee in the first six columns and calculate deductions based on the information in the problem data. Select the type of other deduction, calculate net pay, and assign a check number. Be sure to use the correct marital status table and the correct column and row to determine federal income tax. Total the columns and verify that the amounts calculate across.

2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll.

Page: 1

	DATE	ACCOUNT TITLE	DEBIT	CREDIT
1	20-- Mar. 24	Wages and Salaries Expense	fill in the blank e8d6a3f93050039_2	fill in the blank e8d6a3f93050039_3	1
2		Employee Federal Income Tax Payable	fill in the blank e8d6a3f93050039_5	fill in the blank e8d6a3f93050039_6	2
3		Social Security Tax Payable	fill in the blank e8d6a3f93050039_8	fill in the blank e8d6a3f93050039_9	3
4		Medicare Tax Payable	fill in the blank e8d6a3f93050039_11	fill in the blank e8d6a3f93050039_12	4
5		Credit Union Expense	fill in the blank e8d6a3f93050039_14	fill in the blank e8d6a3f93050039_15	5
6		Health Insurance Premiums Payable	fill in the blank e8d6a3f93050039_17	fill in the blank e8d6a3f93050039_18	6
7		City Tax Expense	fill in the blank e8d6a3f93050039_20	fill in the blank e8d6a3f93050039_21	7
8		Employee Income Tax Expense	fill in the blank e8d6a3f93050039_23	fill in the blank e8d6a3f93050039_24	8
9		Cash	fill in the blank e8d6a3f93050039_26	fill in the blank e8d6a3f93050039_27	9
10		Payroll for week ended March 22			10

Accepted Answer

1.

PAYROLL REGISTER - WEEK ENDED MAR 22, 20__

Name
Employee No.
Allowances
Marital status…