The following information for the Robledo Company is avail- P.O. 3,4 able from Robledo’s time books and the employees’ individual earnings records for the pay period ended December 22:

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.
Instructions 1. Complete the payroll register, page 56, using a Social Security tax rate of 6.2 percent and a Medicare tax rate of 1.45 percent. (The total of Social Security tax deduction and Medicare tax deduction for D. C. King is $74.13. Check this figure.) Concerning Other Deductions, AR refers to Accounts Receivable and UW refers to United Way. Begin payroll checks in the payroll register with number 971.
2. Prepare general journal entries to record the payroll, the transfer of cash to the cash-payroll bank account, and the payment to employees. Check Figure Net Amount, $4,619.67 Problem Set B

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Earnings Federal Hours at End of Total Income Other Name Worked Previous Week Earnings Class. Tax Deduct. Bach, C. E. 44 22,950 494.50 Sales 53.00 UW 6.50 Ball, V. A. 40 27,410 510.00 Sales 55.00 AR 80.00 Church, J. P. 40 26,860 510.00 Sales 55.00 UW 6.50 Entzel, N. D. 44 22,490 460.00 Office 55.00 UW 5.00 Gram, J. W. 48 26,980 598.00 Office 65.00 UW 6.00 King, D. C. 40 61,750 1,050.00 Office 156.00 UW 12.00 Magana, R. G. 40 26,860 510.00 Sales 55.00 AR 54.00 Moody, P. M. 40 26,750 500.00 Sales 62.00 UW 6.00 Olson, T. B. 44 23,480 494.50 Sales 53.00 UW 6.50 Ross, K. C. 42 41,000 860.00 Sales 116.00 UW 8.00