Payroll work sheet and journal entries LO_2,3 The payroll records of White House Corporation for the week ending October 7, the fortieth week in the year, show the following:

Required:
1. Complete a work sheet with the following column headings:
Employee 3 columns for Earnings for Week:
Use one for Regular Pay Use one for Overtime Premium Pay (The company pays time-and-a-half for overtime for all employees below the supervisory level.)
Use one for Total for Week Total Earnings through Fortieth Week FICA Taxable Earnings FICA Income Tax Withheld Net Earnings 2. Prepare journal entries for the following:

a. Payroll for fortieth week.

b. Payment of payroll for week.

c. Distribution of the payroll costs, assuming that overtime premium is charged to all jobs worked on during the period.

d. Employer's payroll tax liability.
3. The company carries a disability insurance policy for the employees at a cost of $7.80 per week for each employee. Journalize the employer's cost of insurance premiums for the week.

Transcribed Image Text:

Salary or Wage per Hours Income Tax Employee Classification 40-Hour Week Worked Withheld Buchanan President $2,040 40 $400 Gross Earnings through Thirty-Ninth week. $79,560 Bush Vice-President-Administration 1,782 40 320 69,500 Carter Supervisor-Production 700 40 180 27,300 Cheney Factory-Direct 500 48 150 19,820 Clinton Factory-Direct 400 46 160 17,200 Gore Factory-Direct 400 44 Lieberman Factory-Direct 380 42 110 16,600 120 15.200 Nader Factory-Indirect 300 42 80 7,800 Reagan Factory-Indirect 300 42 60 6,600