Holland Company has the follotving payroll information for the pay period ended May 14:

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 34. 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 journal entry to record the payment of wages. Begin payroll checks Check Figure ' with No. 744. Net Amount, $1,684.42

Transcribed Image Text:

Earnings Daily Time Federal at End of Pay Income Name Previous Week M T W T F S Rate Tax Fornay, N. C. 6,566.00 8 8 8 8 8 00 0 8.60 35.00 Freeman, A. L. 6,624.60 8 8 8 8 8 0 7.30 28.00 Kahler, D. R. 5,254.20 0 8 8 8 8 7.30 28.00 McLeod, N. A. 8,647.00 8 8 8 8 9.75 41.00 Rudy, B. M. 5,254.20 8 8 00 8 8 8 7.30 34.00 Truitt, P. R. 7,356.30 0 8. 8 8 8 00 8 8.60 35.00