Assume that the social security tax rate is 6% and the Medicare tax rate is 1.5%. In the following summary of data for a payroll period, some amounts have been intentionally omitted:

Earnings:
1. At regular rate	?
2. At overtime rate	$60,000
3. Total earnings	?
Deductions:
4. Social security tax	31,200
5. Medicare tax	7,800
6. Federal income tax withheld	130,000
7. Medical insurance	18,200
8. Union dues	?
9. Total deductions	194,700
10. Net amount paid	325,300
Accounts debited:
11. Factory Wages	275,000
12. Sales Salaries	?
13. Office Salaries	115,000

Required:

a.

Determine the amounts omitted in lines (1), (3), (8), and (12).

b.

On December 19, journalize the entry to record the payroll accrual.*

c.

On December 20, journalize the entry to record the payment of the payroll.*

*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

a. Determine the amounts omitted in lines (1), (3), (8), and (12).

(1)
(3)
(8)
(12)

b.	On December 19, journalize the entry to record the payroll accrual.*
c.	On December 20, journalize the entry to record the payment of the payroll.*
	*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
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