Question

In the following summary of data for a payroll period, some amounts have been intentionally omitted: Earnings: $72,600 1. At regular rate 2. At overtime rate 3. Total earnings Deductions: 4. Social security tax 5. Medicare tax 29,040 6. Income tax withheld 7,260 123,400 16,700 7. Medical insurance 8. Union dues 9. Total deductions 179,000 305,000 10. Net amount paid Accounts debited: 11. Factory Wages 256,500 12. Sales Salaries 13. Office Salaries 96,800

Answer 1

A)	Calculate the amount omitted in lines :
1)	$ 411,400
3)	$ 484,000
8)	$ 2,600
12)	$ 130,700
	Explanation :
	Net amount paid		$ 305,000
	Add: Total deductions		$ 179,000
3)	Total earnings		$ 484,000
	less: overtime		( $ 72,600)
1)	Regular		$ 411,400
	Total deductions		$ 179,000
	less:
	social security tax	$ 29,040
	medicare tax	$ 7,260
	income tax withheld	$ 123,400
	medical insurance	$ 16,700	( $ 176,400)
8)	Union dues		$ 2,600
	Total earnings		$ 484,000
	less:
	Factory wages	$ 256,500
	Office salaries	$ 96,800	( $ 353,300)
12)	Sales Salaries		$ 130,700

B)	Journalize the entry to record the payroll accrual :
	General journal	Debit	Credit
	Factory wages Expense	$ 256,500
	Sales salaries Expense	$ 130,700
	Office salaries expense	$ 96,800
	Social security tax payable		$ 29,040
	Medicare tax payable		$ 7,260
	Employees income tax payable		$ 123,400
	Medical insurance payable		$ 16,700
	Union Dues payable		$ 2,600
	Salaries payable (Balance in figure )		$ 305,000
	( To record the payroll accrual )
	To find out Salaries payable :
	{(256,500+130,700+96,800)- (29040+7260+
	123400+16700+2600)}= $ 305,000
C)	Journalize the entry to record the payment of the payroll:
	General journal	Debit	Credit
	Salaries payable	$ 305,000
	Cash		$ 305,000
	( To record the payment of the payroll )