Textbook Problem

Payroll summary

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

Employee	Hours Worked	Hourly Rate	Weekly Salary	Federal Income Tax	U.S. Savings Bonds
Aaron	46	$68.00		$750.20	$100
Cobb	41	62.00		537.68	110
Clemente	48	70.00		832.64	120
DiMaggio	35	56.00		366.04	0
Griffey, Jr.	45	62.00		641.84	130
Mantle			$1,800	342.45	120
Robinson	36	54.00		382.56	130
Williams			2,000	398.24	125
Vaughn	42	62.00		584.72	50

Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½times 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.

Instructions

1.    Prepare a payroll summary for Throwback Industries Inc. for the week ended December 9. Use the following columns: Employee, Total Hours, Regular Earnings, Overtime Earnings, Total Earnings, Social Security Tax, Medicare Tax, Federal Income Tax, U.S. Savings Bonds, Total Deductions, Net Pay, Ck. No., Sales Salaries Expense, and Office Salaries Expense.

2.    Journalize the entry to record the payroll for the week.