Summary payroll data In the following summary of data for a payroll period, some amounts have been intentionally omitted: Earnings: 1. At regular rate ? 2. At overtime rate $ 80,000 3. Total earnings ? Deductions: 4. Social security tax 32,400 5. Medicare tax 8,100 6. Income tax withheld 135,000 7. Medical insurance 18,900 8. Union dues ? 9. Total deductions 201,150 10. Net amount paid $338,850 Accounts debited: 11. Factory Wages 285,000 12. Sales Salaries ? 13. Office Salaries 120,000 A. Calculate the amounts omitted in lines (1), (3), (8), and (12). B. Journalize the entry to record the payroll accrual. C. Journalize the entry to record the payment of the payroll.

Q: Expert Answer

A. To determine Payroll: The total payment that a company is required to pay to its employee for the services received is called as payroll. Payroll withholding deduction: The amounts which the employer withheld from employees’ gross pay to deduct taxes such as federal income tax, state income tax, local income tax, and social security tax are called payroll withholding deduction. To calculate: Omitted amounts Explanation Calculate the omitted amounts in line (1), (3), (8), and (12). Calculate the amount of total earnings (3). Total earnings ( 3 ) = Net amount paid +Total deductions = $338,850 + $ 201 , 150 = $ 540 , 000 Calculate the amount of regular (1). Regular ( 1 ) = Total earnings − Overtime = $540,000 − $ 80 , 000 = $ 460 , 000 Calculate the amount of union dues (8). Union dues ( 8 ) = Total deductions − ( Social security tax + Medicare tax </ B. To determine To Journalize: The entry to record payroll accrual. C. To determine To Journalize : The entry to record the payment of payroll.

Question

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Answer 1

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Financial & Managerial Accounting

13th Edition

Carl Warren + 2 others

Publisher: Cengage Learning

ISBN: 9781285866307

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Answer 2

BuyFind

Financial & Managerial Accounting

13th Edition

Carl Warren + 2 others

Publisher: Cengage Learning

ISBN: 9781285866307

Solutions

Chapter

Section

Answer 3

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Section

Answer 4

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Answer 5

A.

To determine

Payroll: The total payment that a company is required to pay to its employee for the services received is called as payroll.

Payroll withholding deduction: The amounts which the employer withheld from employees’ gross pay to deduct taxes such as federal income tax, state income tax, local income tax, and social security tax are called payroll withholding deduction.

To calculate: Omitted amounts

Explanation of Solution

Calculate the omitted amounts in line (1), (3), (8), and (12).

Calculate the amount of total earnings (3).

Total earnings(3)=Net amount paid +Total deductions= $338,850 + $201,150 =$540,000

Calculate the amount of regular (1).

Regular(1)=Total earnings−Overtime= $540,000−$80,000 =$460,000

Calculate the amount of union dues (8).

Union dues (8)=Total deductions−(Social security tax+ Medicare tax</

Answer 6

B.

To determine

To Journalize: The entry to record payroll accrual.

Answer 7

C.

To determine

To Journalize: The entry to record the payment of payroll.

Financial & Managerial Accounting

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Financial & Managerial Accounting

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Chapter 10 Solutions

Additional Business Textbook Solutions

Earnings:
1. At regular rate	?
2. At overtime rate	$ 80,000
3. Total earnings	?
Deductions:
4. Social security tax	32,400
5. Medicare tax	8,100
6. Income tax withheld	135,000
7. Medical insurance	18,900
8. Union dues	?
9. Total deductions	201,150
10. Net amount paid	$338,850
Accounts debited:
11. Factory Wages	285,000
12. Sales Salaries	?
13. Office Salaries	120,000