College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756



College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

Abigail Trenkamp owns and operates the Trenkamp Collection Agency. Listed below are the name, number of allowances claimed, marital status, information from time cards on hours worked each day, and the hourly rate of each employee. All hours worked in excess of 40 hours for Monday through Friday are paid at 11/2 times the regular rate. All weekend hours are paid at double the regular rate.

  Trenkamp uses a weekly federal income tax withholding table (see Figure 8-4 on pages 288 and 289). Social Security tax is withheld at the rate of 6.2% for the first $128,400 earned. Medicare tax is withheld at 1.45% and state income tax at 3.5%. Each employee has $12 withheld for health insurance. All employees use payroll deduction to the credit union for varying amounts as listed.

Trenkamp Collection Agency Payroll Information for the Week Ended November 18, 20--


  The Trenkamp Collection Agency follows the practice of drawing a single check for the net amount of the payroll and depositing the check in a special payroll account at the bank. Individual checks issued were numbered consecutively, beginning with No. 331.


  1. 1. Prepare a payroll register for Trenkamp Collection Agency for the week ended November 18, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter $365 for Salzman and $440 for Layton. Leave this column blank for all other employees.) Total the amount columns, verify the totals, and rule with single and double lines.
  2. 2. Assuming that the wages for the week ended November 18 were paid on November 21, prepare the journal entry for the payment of this payroll.
  3. 3. The current employee earnings record for Beth Salzman is provided in the working papers. Update Salzman’s earnings record to reflect the November 18 payroll. Although this information should have been entered earlier, complete the required information on the earnings record. The necessary information is as follows:

    Name Beth F. Salzman

    Address 12 Windmill Lane

    Trumbull, CT 06611

    Employee No. 8

    Gender Female

    Department Administration

    Occupation Office Assistant

    Social Security No. 446-46-6321

    Marital Status Married

    Allowances 2

    Pay Rate $11.00 per hour

    Date of Birth 4/5/84

    Date Hired 7/22/--


To determine

Prepare a payroll register for Agency T for the week ended November 18, 20--.



Payroll refers to the total amount that is required to be paid by the company to its employees during a week, month or other period. It is the financial record of the wages and bonus, net pay, salary and deductions of a company’s employees.

Prepare a payroll register for Agency T for the week ended November 18, 20--.


To determine

Prepare the journal entry for the payment of the payroll.


To determine

Complete an employee earnings record for Person SB.

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