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Williams Company pays its employees time-and-a-half for hours worked in excess of 40 per week. The information available from time records and employees’ individual earnings records for the pay period ended September 21 is shown in the following chart: Taxable earnings for Social Security are based on the first $ 118,500. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000. Required 1. Complete the payroll register using the wage-bracket income tax withholding table in Figure 3 (pages 293–294). The Social Security tax rate is 6.2 percent, and the Medicare tax rate is 1.45 percent. Assume that all employees are married. In the payroll register, begin payroll checks with No. 1863. 2. Prepare a general journal entry to record the payroll. The firm’s general ledger contains a Wages Expense account and a Wages Payable account. 3. Assuming that the firm has transferred funds from its regular bank account to its special payroll bank account and that this entry has been made, prepare a general journal entry to record the payment of wages.

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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

Solutions

Chapter
Section
Chapter 7, Problem 3PB
Textbook Problem

Williams Company pays its employees time-and-a-half for hours worked in excess of 40 per week. The information available from time records and employees’ individual earnings records for the pay period ended September 21 is shown in the following chart:

Chapter 7, Problem 3PB, Williams Company pays its employees time-and-a-half for hours worked in excess of 40 per week. The

Taxable earnings for Social Security are based on the first $ 118,500. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000.

Required

  1. 1. Complete the payroll register using the wage-bracket income tax withholding table in Figure 3 (pages 293–294). The Social Security tax rate is 6.2 percent, and the Medicare tax rate is 1.45 percent. Assume that all employees are married. In the payroll register, begin payroll checks with No. 1863.
  2. 2. Prepare a general journal entry to record the payroll. The firm’s general ledger contains a Wages Expense account and a Wages Payable account.
  3. 3. Assuming that the firm has transferred funds from its regular bank account to its special payroll bank account and that this entry has been made, prepare a general journal entry to record the payment of wages.

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