Question

please help find discrepancy and solve.

Park Company had the following partially completed payroll register: (Click the icon to view the partial payroll register.) (Click the icon to view payroll tax rate information.) Read the requirements. More Info - X Requirement 1. Complete the payroll register. Round to two decimals. (Round all amounts to the nearest cent. Abbreviations used: Beg. = Begin With. = Withholdings; Chk = Check.) Earnings Withholdings For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Salaries Employee: and Chk Wages Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. No. Exp. Beg. Current Ending Cum. Period Cum. Earn. Earn. Earn. OASDI $ 79,000 $ 4,100 83,100||| 254.20 111,600 7,100 118,700 440.20| 42,000 3,300 45,300| 204.60 65,000 3,100 68,100| 192.20 0 5,000 5,000|| 310.00 $ 297,600 $ 22,600 | 320,200||| 1401.20|| Income Health United Total Net Med. Tax Ins. Way With. Pay 59.45 $ 410 $ 82 $ 40 8 45.65||| 3,254.35 102.95 1,775 142 5 2,465.15 || 4,634.85 47.85 3 30 66 0 648.45 2,651.55 44.95 7 75 62 15 1089.15 | 2,010.85 72.50 1,250 100 0 1,732.50|| 3,267.50 327.70 $ 4,540 $ 452 $ 606,470.9 | 15,819.06 Print Done 801 802 803 804 805 4,100) 7,100 3,300 ,100 5,000 22,600 3 nd all amounts to the nearest cent. Record debits first, then credits. Select the explanation on the last line of the journal entry Requirement 2. Journalize Park Company's salaries and wages expense accrual for the current pay peric table.)

Answer 1

1.

Earnings			Withholdings
											Salaries
Beg.	Current	Ending									and
Cum.	Period	Cum.			Income	Health	United	Total	Net	Chk	Wages
Earn.	Earn.	Earn.	OASDI	Med.	Tax	Ins.	Way	With.	Pay	No.	Exp.
79000	4100	83100	254.20	59.45	410	82	40	845.65	3254.35	801	4100
111600	7100	118700	427.80	102.95	1775	142	5	2452.75	4647.25	802	7100
42000	3300	45300	204.60	47.85	330	66	0	648.45	2651.55	803	3300
65000	3100	68100	192.20	44.95	775	62	15	1089.15	2010.85	804	3100
0	5000	5000	310.00	72.50	1250	100	0	1732.50	3267.5	805	5000
297600	22600	320200	1388.80	327.70	4540	452	60	6768.50	15831.5		22600

Since employee contribution to OASDI is restricted to the first $118,500, in the second line item case the same is computed as [6.2% x ($118500 - $111600)] = 6.2% x $6900 = $427.80.

It is thus computed only on $6,900 of the current period earnings and not on the entire $7,100.

2.

Date	Account Titles and Explanation	Debit	Credit
	Salaries and wages expense	22600.00
	OASDI tax payable		1388.80
	Medicare tax payable		327.70
	Employee income tax payable		4540.00
	Health insurance payable		452.00
	United way contribution payable		60.00
	Salaries and wages payable		15831.50
	(To record the salaries and wages expense accrual)