Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Assume that the Social Security tax is 6.2 percent and Medicare tax is 1.45 percent. All earnings are subject to Social Security and Medicare taxes. BrownRingnessTotalRegular earnings$ 3,500.00$ 2,618.00$ 6,118.00Overtime earnings146.00120.00266.00Total earnings$ 3,646.00$ 2,738.00$ 6,384.00Federal income tax withheld$ 312.08$ 175.89$ 487.97State income tax withheld62.4235.1897.60Social Security tax withheld226.05169.76395.81Medicare tax withheld52.8739.7092.57Charity withheld35.0097.00132.00Total deductions$ 688.42$ 517.53$ 1,205.95Net pay$ 2,957.58$ 2,220.47$ 5,178.05Assume that the employees are paid from the company's regular bank account (check numbers 981 and 982).Prepare the entry to record and pay the payroll in general journal form, dated September 30. If required, round amounts to the nearest cent. If an amount does not require an entry, leave it blank.

Wages: Wages are the earnings of the employees for their work to the company they serve. These are…

Answered: Precision Labs has two employees. The…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 7E

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Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Assume that the Social Security tax is 6.2 percent and Medicare tax is 1.45 percent. All earnings are subject to Social Security and Medicare taxes.

	Brown	Ringness	Total
Regular earnings	$ 3,500.00	$ 2,618.00	$ 6,118.00
Overtime earnings	146.00	120.00	266.00
Total earnings	$ 3,646.00	$ 2,738.00	$ 6,384.00
Federal income tax withheld	$ 312.08	$ 175.89	$ 487.97
State income tax withheld	62.42	35.18	97.60
Social Security tax withheld	226.05	169.76	395.81
Medicare tax withheld	52.87	39.70	92.57
Charity withheld	35.00	97.00	132.00
Total deductions	$ 688.42	$ 517.53	$ 1,205.95
Net pay	$ 2,957.58	$ 2,220.47	$ 5,178.05

Assume that the employees are paid from the company's regular bank account (check numbers 981 and 982).

Prepare the entry to record and pay the payroll in general journal form, dated September 30. If required, round amounts to the nearest cent. If an amount does not require an entry, leave it blank.

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