The payroll records of Navasota Video Productions provide the following information for the weekly pay period ended December 29, 2007:

Employees are paid wages at the rate of time-and-a-half for hours over 40 per week. Round all amounts to the nearest dollar, and show your computations. Explanations are not required for journal entries.

Requirements 

1. Enter the appropriate information in a payroll record similar to Exhibit 11-6, page 563. In addition to the deductions listed, the employer also takes out FICA tax: \(8 \%\) of the first \(\$ 90,000\) of each employee's annual earnings.

2. Record the payroll information in the general journal.

3. The first payroll check is number 319, paid to Larry Fisher. Record the check numbers in the payroll record. Also, prepare the general journal entry to record payment of net wages payable to the employees.

4. The employer's payroll taxes include FICA tax of \(8 \%\) of the first \(\$ 90,000\) of each employee's wages. The employer also pays unemployment taxes of \(6.2 \%(5.4 \%\) for the state and \(0.8 \%\) for the federal government) on the first \(\$ 7,000\) of each employee's annual earnings. Record the employer's payroll taxes in the general journal.

Transcribed Image Text:

Hourly Federal Employee Hours Worked Wage Income United Way Rate Tax Contributions Larry Fisher....... 42 $40 $278 $35 Earnings Through Previous Week $90,474 Felicia Jones...... 47 8 87 4 23,154 Joe Opper.......... 40 11 64 4,880 Sara Tate............ 46 35 288 8 88,600