Hanson Mobile Homes has the following payroll information for the week ended February 21:

Taxable earnings for Social Security are based on the first $62,700. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000. Employees are paid time-anda-half for work in excess of 40 hours per week.
Instructions 1. Complete the payroll register, page 37. The Social Security tax rate is 6.2 per¬
cent, and the Medicare tax rate is 1.45 percent.
2. Prepare a general journal entry to record the payroll. The firm’s general ledger contains a Wages Expense account and a Wages Payable account.
3. Assuming that the firm transfers funds from its regular bank account to its special payroll bank account, make the entry in the general journal.
4. Prepare a general journal entry to record the payment of wages. Begin payroll Check Figure checks with no. 206. Net Amount, $1,626.70

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Name Ames, A. C. Earnings at End of Previous Week 1,916.00 Beaty, D. R. 2,027.00 Colson, H. A. 1,916.00 Farris, P. N. 538.00 Oliver, L. B. 2,229.00 Thrush, G. W. 1,974.00 S 8 M 8 88 Daily Time Federal Pay Income T W T F S Rate Tax 00 00 00 8 8 8. 8 8 8 co co 00 8 8 8 8 8 co 8.20 32.00 8 9.60 29.00 8. 8.20 32.00 5.90 17.00 88 8 9.90 37.00 8 8.40 43.00