Otto Drug Store has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended

The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%. The first three employees are sales clerks (store wages expense). The fourth employee performs administrative duties (office wages expense).

Instructions
(a) Prepare a payroll register for the weekly payroll.
(b) Journalize the payroll on February 15, 2014, and the accrual of employer payroll taxes.
(c) Journalize the payment of the payroll on February 16, 2014.
(d) Journalize the remittance to the Federal Reserve bank on February 28, 2014, of the FICA and federal income taxes payable to thegovernment.

Transcribed Image Text:

Federal United Fund Hours Hourly Income Tax Worked Rate Withholdings Contributions Employee M. Dingler D. Patel L. Grimmett A. Blv 39 42 $12.00 12.00 0.00 0.00 $34 20 51 36 10.00 5.00 5.00 46