In this problem, you will process the November and December monthly payrolls for Warner Merchandising Co. You will perform the operating procedures necessary to add new employees, make changes to employee data, and delete employees. Because December 31st is the end of the year, you will also display the quarterly report and W-2 statements. Answer audit questions 7-A on pages 321–323 as you complete this problem. Display reports as necessary to answer the questions. As you complete this problem, click Info. on the toolbar for helpful check figures to audit your work.

Step 1: Start up Integrated Accounting 8e.
Step 2: Load file IA8 Problem 07-A.
Step 3: Enter your name in the Your Name text box.
Step 4: Save the file as 07-A1 Your Name.
Step 5: Enter the employee maintenance data:
Add new employee Zellmer, Kevin; 857 Shaffer Ave.; Atlanta, GA 30327-4835; Assign employee number 290; Social Security number, 520-69-8573; withholding allowances, 3; pay periods per year, 12; G.L. Account, 6210 (Sales Salaries Exp.); hourly, $10.35; married.
Change the marital status of Griffith, Phillip to married.
Change the street address of Schilling, Frank to 1827 Deercross Dr.
Change the salary of Yoshino, Sumio to $2,925.00.
Delete employee no. 230 (Kastella, Earl).
Step 6: Enter the following November payroll transactions and generate paychecks. Withhold all three voluntary deductions this pay period (health insurance, dental insurance, and credit union deductions) and use a transaction date of 11/30/—. Calculate taxes using the Calculate Taxes button.

November Payroll

Nov. 30 

Record the monthly payroll check to Falgren, Eunice; Check No. 562; salary amount, $5000.00; health insurance, $75.00; dental insurance, $35.00; credit union, $350.00.

30 

Record the monthly payroll check to Griffith, Phillip; Check No. 563; regular hours, 156.0; health insurance, $65.00; dental insurance, $25.00; credit union, $75.00.

30 

Record the monthly payroll check to Mettler, Mary; Check No. 564; regular hours, 168.0; one-and-a-half times overtime hours, 4.0; health insurance, $85.00; dental insurance, $35.00; credit union, $100.00.

30 

Record the monthly payroll check to Phelps, Donna; Check No. 565; regular hours, 164.0; health insurance, $65.00; dental insurance, $25.00; credit union, $100.00.

30 

Record the monthly payroll check to Schilling, Frank; Check No. 566; salary amount, $4324.00; health insurance, $80.00; dental insurance, $30.00; credit union, $300.00.

30 

Record the monthly payroll check to Winters, Annette; Check No. 567; regular hours, 168.0; one-and-a-half times overtime hours, 4.0; double overtime hours, 2.5; health insurance, $65.00; dental insurance, $25.00; credit union, $50.00.

30 

Record the monthly payroll check to Yoshino, Sumio; Check No. 568; salary amount, $2925.00; health insurance, $70.00; dental insurance, $28.00; credit union, $50.00.

30 

Record the monthly payroll check to Zellmer, Kevin; Check No. 569; regular hours, 140.0; health insurance, $70.00; dental insurance, $25.00; credit union, $60.00.

Step 7: Display the Employee List report.
Step 8: Display the Payroll Report.
Step 9: Generate and post the journal entry for the current payroll.
Step 10: Generate and post the employer’s payroll taxes journal entry.
Step 11: Display the November payroll journal entries.
Step 12: Save your data to disk (with file name 07-A1 Your Name).
Step 13: Use Save As to save the data with a file name of 07-A2 Your Name).
Step 14: Enter the following December payroll transactions and generate paychecks. Withhold all three voluntary deductions this pay period (health insurance, dental insurance, and credit union deductions) and use a transaction date of 12/31/—.

December Payroll

Dec. 31 

Record the monthly payroll check to Falgren, Eunice; Check No. 570; salary amount, $5000.00; health insurance, $75.00; dental insurance, $35.00; credit union, $350.00.

31 

Record the monthly payroll check to Griffith, Phillip; Check No. 571; regular hours, 176.0; one-and-a-half times overtime hours, 3.5; health insurance, $65.00; dental insurance, $25.00; credit union, $75.00.

31 

Record the monthly payroll check to Mettler, Mary; Check No. 572; regular hours, 176.0; health insurance, $85.00; dental insurance, $35.00; credit union, $100.00.

31 

Record the monthly payroll check to Phelps, Donna; Check No. 573; regular hours, 160.0; health insurance, $65.00; dental insurance, $25.00; credit union, $100.00.

31 

Record the monthly payroll check to Schilling, Frank; Check No. 574; salary amount, $4324.00; health insurance, $80.00; dental insurance, $30.00; credit union, $300.00.

31 

Record the monthly payroll check to Winters, Annette; Check No. 575; regular hours, 176.0; health insurance, $65.00; dental insurance, $25.00; credit union, $50.00.

31 

Record the monthly payroll check to Yoshino, Sumio; Check No. 576; salary amount, $2925.00; health insurance, $70.00; dental insurance, $28.00; credit union, $50.00.

31 

Record the monthly payroll check to Zellmer, Kevin; Check No. 577; regular hours, 176.0; one-and-a-half times overtime hours, 4.0; double overtime hours, 4.0; health insurance, $70.00; dental insurance, $25.00; credit union, $60.00.

Step 15: Display the payroll report.
Step 16: Generate and post the journal entry for the current payroll.
Step 17: Generate and post the employer’s payroll taxes journal entry.
Step 18: Display the December payroll journal entries.
Step 19: Use Check on the toolbar to check your work.
Step 20: Generate a Labor Distribution graph.
Step 21: Display the Quarterly Report.
Step 22: Display the W-2 statements.
Step 23: Save your data to disk with a file name of 07-A2 Your Name.
Step 24: Use the Savings Planner to calculate the number of months needed for an ending balance given the following information:
Beginning savings ....................................... $35,000.00
Annual yield (Percent) ......................................... 6.75%
Monthly contribution .................................... $2,000.00
Ending savings balance............................. $200,000.00

Step 25: Optional spreadsheet integration activity.
The management of Warner Merchandising Co. asked you to use a spreadsheet to prepare a payroll distribution of gross earnings report for the year.
a. Copy the payroll report to the clipboard in spreadsheet format.
b. Start up your spreadsheet software and load the template file IA8 Spreadsheet 07-A.
c. Select cell A1 as the current cell (if not already selected) and paste the report copied in step a into the spreadsheet.
d. Enter + A3 in cell A120.
Enter Payroll Distribution (Gross Earnings) in cell A121.
Enter + A5 in cell A122.
Enter Employee in cell A124.
Enter Gross Earnings in cell B124.
Enter the cell references to each employee and their corresponding yearly gross earnings in the columns under the respective headings.
Enter the appropriate formula to sum the gross earnings.
Format the report (align headings, format currency cells, etc.).
e. Generate a pie chart.
Select the range of cells containing the employee number/name and corresponding gross earnings, then choose the Chart or Graph menu item from the spreadsheet program you are using. If the computer asks for a graph name, etc., enter Payroll Distribution and click OK. Choose Pie Chart from the toolbar if the graph that appears is not a pie chart. Finally, if the spreadsheet software you are using permits copying and pasting the chart into the worksheet, copy and paste the chart immediately after the payroll distribution report cells.
f. Print the payroll distribution report portion of the spreadsheet and pie chart.
g. Save the spreadsheet data with a file name of 07-A Your Name.
h. End your spreadsheet session.

Step 26: Optional word processing integration activity.
The personnel department asked you to prepare a report showing each employee’s general ledger salary expense account number and salary/ hourly rate.
a. Display and copy the employee list to the clipboard in word processing format.

b. Start up your word processing application software and create a new document. (Use a fixed type font such as Courier.)
c. Paste the employee list report into the document.
d. Enter headings, delete unwanted data, and so on, and then format the report for the desired data.
e. Print the completed report.
f. Save the document with a file name of 07-A Your Name.
g. End your word processing session.

Step 27: End the Integrated Accounting 8e session.