1 - Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

	Consultant		Computer Programmer		Administrator
Regular earnings rate	$3,010 per week		$36 per hour		$44 per hour
Overtime earnings rate	Not applicable		1.5 times hourly rate		2 times hourly rate
Number of withholding allowances	3		2		1

For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined by adding $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70.

Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places.

	Consultant	Computer Programmer	Administrator
Gross pay	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Net pay	$fill in the blank 4	$fill in the blank 5	$fill in the blank 6

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2- Urban Window Company had gross wages of $290,000 during the week ended July 15. The amount of wages subject to social security tax was $261,000, while the amount of wages subject to federal and state unemployment taxes was $36,000. Tax rates are as follows:

Social security	6.0%
Medicare	1.5%
State unemployment	5.4%
Federal unemployment	0.6%

The total amount withheld from employee wages for federal taxes was $58,000.

For a compound transaction, if an amount box does not require an entry, leave it blank.

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a. Journalize the entry to record the payroll for the week of July 15.

blank	CashMedicare Tax PayableSocial Security Tax PayableState Unemployment Tax PayableWages Expense	- Select -	- Select -
	CashEmployees Federal Income Tax ExpenseSocial Security Tax ExpenseSocial Security Tax PayableWage Expense	- Select -	- Select -
	Federal Unemployment Tax PayableMedicare Tax ExpenseMedicare Tax PayablePayroll Tax ExpenseWage Expense	- Select -	- Select -
	CashEmployees Federal Income Tax PayablePayroll Tax ExpenseState Unemployment Tax ExpenseState Unemployment Tax Payable	- Select -	- Select -
	CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayablePayroll Tax ExpenseWages Payable	- Select -	- Select -

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b. Journalize the entry to record the payroll tax expense incurred for the week of July 15.

blank	CashMedicare Tax PayablePayroll Tax ExpenseSocial Security Tax PayableState Unemployment Tax Payable	- Select -	- Select -
	CashPayroll Tax ExpenseSalaries ExpenseSocial Security Tax ExpenseSocial Security Tax Payable	- Select -	- Select -
	CashMedicare Tax PayablePayroll Tax ExpenseSalaries ExpenseSalaries Payable	- Select -	- Select -
	CashPayroll Tax ExpenseSalaries PayableState Unemployment Tax ExpenseState Unemployment Tax Payable	- Select -	- Select -
	CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayablePayroll Tax ExpenseSalaries Payable	- Select -	- Select -