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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

For the week ended September 7, the totals of the payroll register for Benton, Inc., are presented below. The regular and overtime earnings are correct. List six errors that exist. None of the employees have earned more than $118,500, so all earnings are subject to Social Security and Medicare taxes. Assume that amounts for taxable earnings (unemployment, Social Security, Medicare) and deductions (federal income tax, union dues, charity) are correct. Round amounts to the nearest penny.

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To determine

Identify the six errors in the given payroll register of Company B.

Explanation

Payroll register:

Payroll register is a form that is used by an employer to gather information on earnings, taxable earnings, deductions and net pay of each employee at the end of the each payroll period.

Identify the six errors in the given payroll register of Company B.

  1. 1. The total earning column of the payroll register of Company B is wrongly entered as $7,494.00, the actual earnings that must be entered in the payroll register is  [$6,724.00+$1,220.00] $7,944.00.
  2. 2. The ending cumulative amount is entered wrongly as $253,248 but the actual amount that must be entered in the ending cumulative column of the payroll register is ($245,754.00+$6,724.00+$1,220.00) $253,698.00.
  3. 3. Social security tax that is been withheld must be computed with the total earnings, the social security  tax that is  been withheld is wrongly  amount with as $314.75 but the actual social security tax ($7,944

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