Abigail Trenkamp owns and operates the Trenkamp Collection Agency. Listed on the following page 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 1½ 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 on pages 286 and 287). Social Security tax is withheld at the rate of 6.2% for the first $106,800 earned. Medicare tax is withheld at 1.45% and state income tax at 3.5%. Each employee has $5.00 withheld for health insurance. All employees use payroll deduction to the credit union for varying amounts as listed.

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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.

REQUIRED

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. 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. The current employee earnings record for Ben 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                                       Ben F. Salzman

Address                                   12 Windmill Lane

Trumbull,                                 CT 06611

Employee No.                         8

Gender                                    Male

Department                             Administration

Occupation                              Office Manager

Social Security No.                 446-46-6321

Marital Status                          Married

Allowances                             4

Pay Rate                                  $11.00 per hour

Date of Birth                           4/5/64

Date Hired                              7/22/--

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Trenkamp Collection Agency Payroll Information for the Week Ended November 18, 20- Credit Total Employce No of Marital Regular Hours Worked Allow. Status SS M T W T F Hourly Rate Union Earnings 1/1-11/11 Name No. Deposit 2 2 9 8 8 9 10 $12.00 Berling, James Merz, Linda Goctz, Ken Menick, Judd Morales, Eva Heimbrock, Jacob Townsley, Sarah Salzman, Ben Layton, Esther Thompson, David Vadillo, Carmen $149.60 $24,525.00 20,480.00 21,500.00 22,625.00 24,730.00 105,840.00 21,425.00 6,635.00 5,635.00 21,635.00 24,115.00 3 M 8 11 117.00 2 4 8. 10.00 11.00 3 2 6 7 8 10 91.30 4 8. 0. 0. 8. 8. 11.00 126.50 5 3 M 0. 8. 8. 13.00 117.05 6. M. 8. 8. 8. 34.00 154.25 4 6. 6. 6. 6. 4 9.00 83.05 4 6. 2 8. 6. 6. 6. 11.00 130.00 3 8. 8. 11.00 88.00 2 10 10 5 M 9. 10 11.00 128.90 11 0. 4 8. 6. 13.00 139.11