1)

Calculate Payroll

Breakin Away Company has three employees-a consultant, acomputer programmer, and an administrator. The following payrollinformation is available for each employee:

	Consultant		Computer Programmer		Administrator
Regular earnings rate	$2,510 per week		$28 per hour		$40 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 60hours and the administrator worked 50 hours. The federal income taxwithheld for all three employees, who are single, can be determinedby adding $356.90 to 28% of the difference between the employee'samount subject to withholding and $1,796.00. Assume further thatthe social security tax rate was 6%, the Medicare tax rate was1.5%, and one withholding allowance is $70.

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

2)

Payroll Entries

Urban Window Company had gross wages of $197,000 during the weekended July 15. The amount of wages subject to social security taxwas $177,300, while the amount of wages subject to federal andstate unemployment taxes was $25,000. 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 taxeswas $39,400.

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

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

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