Question

Alexander Wilson operates Metroplex Courier and Delivery Service. He has four employees who are paid on an hourly basis. During the workweek beginning December 15 and ending December 21, 2019, his employees worked the number of hours shown below Information about their hourly rates, marital status, and withholding allowances also appears below, along with their cumulative earnings for the year prior to the December 15-21 payroll period. Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate Hours Regular Marital Withholding Cumulative Worked Hourly Rate Status Allowances Earnings $32,690 57,130 53,802 26,450 Employee Gloria Bahamon Alex Garcia Ron Price Sara Russel1 45 41 47 40 $15.10 26.80 25.20 12.10 4 Required: 2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register 3. Compute the amount of social security tax to be withheld from each employee's gross earnings. Assume a 6.2 percent social security rate on the first $122,700 earned by the employee during the year. Enter the figures in the payroll register 4. Compute the amount of Medicare tax to be withheld from each employee's gross earnings. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register 5. Determine the amount of federal income tax to be withheld from each employee's total earnings. Use the tax tables in Figure 10.2a & Figure 10.2b to determine the withholding for Russell. Withholdings are $93.00 for Bahamon, $282.00 for Garcia, and $228.00 for Price. Enter the figures in the payroll register 6. Compute the net amount due each employee and enter the figures in the payroll register 7. Total and prove the payroll register. Bahamon and Russell are office workers. Garcia and Price are delivery workers. 8. Prepare a general journal entry to record the payroll for the week ended December 21, 2019 9. Prepare a general journal entry on December 23 to summarize payment of wages for the week Analyze: What percentage of total taxable wages was delivery wages? Analyze: What percentage of total taxable wages was delivery wages? Complete this question by entering your answers in the tabs below Payroll General Journal Analyze Register Compute the regular, overtime, gross earnings; social security tax and Medicare tax to be withheld from each employee's earnings. Assume the employee during the year. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. each employee's total earnings. (Use the table shown in Figure 10.2A & Figure 10.2B whichever is applicable) to determine the withholdi Garcia, and $228.00 for Price. Finally compute the net amount due of each employee. (Bahamon and Russell are office workers. Garcia and and final answers to 2 decimal places.) Week Beginning: Decemb ayroll Register And ending: December 21, 2019 Paid: December 23, 201 2019 Earnings Deductions Distribution Taxable wages Cumulative earnings Regular Overtime Gross Social Medicare security Income Net amount wages Social Office Del Employee time Medicare tax secur earnings earnings Gloria Bahamon Alex Garcia Ron Price Sara Russell Journal entry worksheet 2 Record the company's payroll to be paid at a later date. Note: Enter debits before credits. Credit Date General Journal Debit Dec 21, 2019 Record entry Clear entry View general journal Journal entry worksheet 2 Record the entry to summarize payment of the payroll Note: Enter debits before credits. Credit Date General Journal Debit Dec 23, 2019 Clear entry View general journal Record entry Analyze Journal Register What percentage of total taxable wages was delivery wages? (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) Percentage of delivery wages KGeneral Journal Analyze

Answer 1

Payroll Register Week Dec, 15, 2019 Earnin And Ending: Dec 21, 2019 Paid: Dec 23, 2019 Distribution Cumulative Taxable Wa Deductions Medicare Income Net AmtOffice Earnings Social Securi Medicare Social Em Regular time Over time Gross Earni Delivery Wa Earnin Earnin Wages Gloria Bahamon Alex Garcia Ron Price Sara Russell TOTAL 484.41 844.51 798.58 390.54 170072.00 173658.05 173658.05 10766.81 2518.04 604.00 1072.00 1008.00 484.00 3168.00 113.25 40.20 264.60 717.25 1112.20 1272.60 484.00 3586.05 32690.00 33407.25 33407.252071.25 57130.0058242.20 58242.20 3611.02 53802.0055074.6055074.603414.63 26450.00 26934.0026934.00 1669.91 0851.59 30851.59 53786.67 50861.39 24873.55 24873.55 53786.67 50861.39 418.05 0.00 160373.20 55725.14 104648.06 Working of Regular and Overtime Earnings Hours Hourly Rate Regular Overtime Regular Overtime Worked ее hours D-A-C Hours earnin earnin Gloria Bahamon Alex Garcia Ron Price Sara Russell 5 604.00 11072.00 45 26.80 25.20 40 40.20 7 1008.00264.60 40 484.00 Income tax not calclated since the Figures 10.2A and 10.2B table have not been shared. Dec 21' 2019 Journal Entry 113316.80 60341.25 Delivery Wages Office Wages To Wages Payable To Social Security Payable To Medicare Payable (Being Journal entry passed forthe week ending Dec 21, 2019) 160373.20 10766.81 2518.04 Dec 23' 2019 Wages Payable Social Security Payable Medicare Payable To Bank Account (Being Amount paid of Wages and related social security and medicare) 160373.20 10766.81 2518.04 173658.05 Percentage of Delivery Wages