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

2. Journalize the entry to record the payroll for the week