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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Payroll register

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

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Employees Grove and Seaver are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1 ½ times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0% of each employee's annual earnings, and Medicare tax is 1.5% of each employee's annual earnings. The next payroll check to be used is No. 328.

Instructions

1. Prepare a payroll register for Flexco Inc. for the week ended December 9, 20Y8. Use the following columns for the payroll register: Employee, Total Hours, Regular Earnings, Overtime Earnings, Total Earnings, Social Security Tax, Medicare Tax, Federal Income Tax, Retirement Savings, Total Deductions, Net Pay, Ck. No., Sales Salaries Expense, and Office Salaries Expense.

Journalize the entry to record the payroll for the wee.

1.

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.

Payroll register: A schedule which is maintained by the company to record the earnings, earnings withholdings, and net pay of each employee is referred to as payroll register.

To Prepare: a payroll register for Incorporation F for the week ended December 9, 20Y8.

Explanation

Working notes:

Calculate regular pay for C.

Regular pay = 40 hours ×$50 per hour=$2,000

Calculate overtime pay for C.

Overtime pay = (52 hours– 40 hours)×($50×1.5)= 12 hours×$75 per hour= $900

Calculate regular pay for J.

Regular pay = 36 hours ×$52 per hour=$1,872

Calculate regular pay for K.

Regular pay = 40 hours ×$58 per hour=$2,320

Calculate overtime pay for K.

Overtime pay = (45 hours– 40 hours)×($58×1.5)= 5 hours×$87 per hour= $435

Calculate regular pay for M.

Regular pay = 37 hours ×$45 per hour=$1,665

Calculate regular pay for S.

Regular pay = 40 hours ×$52 per hour=$2,080

Calculate overtime pay for S.

Overtime pay = (46 hours– 40 hours)×($52×1.5)= 6 hours×$78 per hour= $468

Calculate regular pay for W.

Regular pay = 40 hours ×$50 per hour=$2,000

Calculate overtime pay for W

2.

To determine

To Journalize:  The entry to record payroll for the week.

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