Alexander Wilson operates Metroplex Courier and Delivery Service. The company has four employees who are paid on an hourly basis. During the workweek beginning December 15 and ending December 21, 20X1, employees worked the number of hours shown below. Information about their hourly rates, marital status, and withholding allowances also appears below, along with their cumulative earnings for the year prior to the December 15-21 payroll period. Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate. Hours Regular Employee Worked Marital Withholding Cumulative Hourly Rate Status Allowances Earnings Gloria Bahamon 46 $16.30 M 4 $32,820 Alex Garcia 42 28.10 S 1 57,260 Ron Price 48 26.50 M 3 Sara Russell 40 13.30 S 0 53,932 26,580 Required: 2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register. 3. Compute the amount of social security tax to be withheld from each employee's gross earnings. Assume a 6.2 percent social security rate on the first $122,700 earned by the employee during the year. Enter the figures in the payroll register. 4. Compute the amount of Medicare tax to be withheld from each employee's gross earnings. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register. 5. Determine the amount of federal income tax to be withheld from each employee's total earnings. Use the tax tables in Figure 10.2a & Figure 10.2b to determine the withholding for Russell. Withholdings are $112.00 for Bahamon, $323.00 for Garcia, and $258.00 for Price. Enter the figures in the payroll register. 6. Compute the net amount due to each employee and enter the figures in the payroll register. 7. Bahamon and Russell are office workers. Garcia and Price are delivery workers. 8. Prepare a general journal entry to record the payroll for the week ended December 21, 20X1. 9. Prepare a general journal entry on December 23 to summarize payment of wages for the week. Payroll Register General Journal Analyze Compute the regular, overtime, gross earnings; social security tax and Medicare tax to be withheld from each employee's earnings. Assume a 6.2 percent social security rate on the first $122,700 earned by the employee during the year. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Determine the amount of federal income tax to be withheld from each employee's total earnings. (Use the table shown in Figure 10.2A & Figure 10.2B whichever is applicable) to determine the withholding for Russell. Withholdings for Bahamon is $112.00, $323.00 for Garcia, and $258.00 for Price. Finally compute the net amount due of each employee. (Bahamon and Russell are office workers. Garcia and Price are delivery workers.) (Round your intermediate calculations and final answers to 2 decimal places.) Show less Payroll Register Week Beginning: December 15, 20X1 And ending: December 21, 20X1 Earnings Taxable wages Deductions Paid: December 23, 20X1 Distribution Employee Regular time earnings Overtime earnings Gross earnings Cumulative earnings Social security Medicare Social security Medicare Income tax Net amount Office wages Delivery wages Gloria Bahamon Alex Garcia Ron Price Sara Russell $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 < Payroll Register General Journal > 5 9 7 8 9 10 The amount of income tax to be withheld is ooooo ooo00 00 20000 00000 FIGURE 10.2B Sample Federal Withholding Tax Tables (Partial) for Married Persons-Weekly Payroll Period MARRIED Persons-WEEKLY Payroll Period If the wages are- (For Wages Paid Through December 20X1) And the number of withholding allowances claimed is- At least But less than 0 1 2 3 4 $125 130 135 140 145 OOOOO OOOOO ooooo OOOOO ooooo goooo oo000 OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO ooooo OOOOO OOOOO OOOOO ooooo OOOOO OOOOO OOOOO OOOOO OOOOO ooooo OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO OOOOO ooooo ooooo OOOOO OOOOO OOOOO OOOOO OOOOO ooooo OOOOO ooooo 0000 OOOOO 01012 80123 45678 34567 OOOOO OOOOO OOOOO OOOOO OOOOO 01334 ooooo 23456 12345 68820 22222 OOOOO OOOOO OOOOO 20000 00000 ooooo OOOOO goooo ooooo ooooo ooooo ooooo ooooo oooo ooooo OOOOO OOOOO 0000 00000 ooooo 00112 20000 000-- 22334 45678 OOOOT 34567 23456 12345 OTL3A 56989 22222 wwwww UNNNNNNNNN ON ON 22 22222 83 84 YUNG STE CORNE 2222 22222 23333 www 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570 580 590 600 008 610 620 55 630 640 650 660 670 680 690 700