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10-4 The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9. Employee Hours Worked Hourly Rate Weekly Salary

10-4

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9.

Employee Hours Worked Hourly Rate Weekly Salary Federal Income Tax U.S. Savings Bonds
Aaron 46 $68.00 $750.20 $100
Cobb 41 62.00 537.68 110
Clemente 48 70.00 832.64 120
DiMaggio 35 56.00 366.04 0
Griffey, Jr. 45 62.00 641.84 130
Mantle $1,800 342.45 120
Robinson 36 54.00 382.56 130
Williams 2,000 398.24 125
Vaughn 42 62.00 584.72 50

Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1 times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0%, and Medicare tax is 1.5% of each employees annual earnings. The next payroll check to be used is No. 901.

Required:
1. Prepare a payroll summary for Throwback Industries Inc. for the week ended December 9. Assume the normal working hours in a week are 40 hours.
2. Journalize the entry to record the payroll for the week.
CHART OF ACCOUNTS
Throwback Industries
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Federal Income Tax Payable
221 Bond Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Office Salaries Expense
521 Sales Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Supplies Expense
535 Payroll Tax Expense
538 Cash Short and Over
539 Product Warranty Expense
540 Miscellaneous Expense
710 Interest Expense

. Prepare a payroll summary for Throwback Industries Inc. for the week ended December 9. Assume the normal working hours in a week are 40 hours.

Additional Instructions

Payroll for Week Ending December 9
1 Earnings Earnings Earnings Deductions Deductions Deductions Deductions Deductions Paid Paid Account Debited Account Debited
2 Employee Total Hours Regular Overtime Total Social Security Tax Medicare Tax Federal Income Tax U.S. Savings Bond Total Net Pay Ck. No. Sales Salaries Expense Office Salaries Expense
3 Aaron 46.00 $750.20 $100.00 #901
4 Cobb 41.00 537.68 110.00 #902
5 Clemente 48.00 832.64 120.00 #903
6 DiMaggio 35.00 366.04 #904
7 Griffey, Jr. 45.00 641.84 130.00 #905
8 Mantle 342.45 120.00 #906
9 Robinson 36.00 382.56 130.00 #907
10 Williams 398.24 125.00 #908
11 Vaughn 42.00 584.72 50.00 #909
12 $4,836.37 $885.00
image text in transcribed 2. Journalize the entry to record the payroll for the week

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