Chapter 8 - Homework Assignment eBook Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary's Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal. Mary's Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 3-4 in the text. The payroll data for each employee for the week ended March 22, 20, are given. Employees are paid 1% times the regular rate for working over 40 hours a week. Name No. of Marital Total Hours Total Earnings Allowances Status Worked Mar. 16-22 Rate Rate Jan. 1-Mar. 15 4 M 44 $14.00 $6,300.00 1 S 40 15.00 6,150.00 Bacon, Andrea Cole, Andrew Hicks, Melvin 3 M 44 13.50 5,805.00 1 S 36 14.00 5,600.00 Leung, Cara Melling, Melissa 2 M 40 14.50 5,945.00 Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agency's credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan. Mary's Luxury Travel's payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423. Required: 1. Prepare a payroll register for Mary's Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns. If required, round your answers to the nearest cent. , Payroll Register for Period Ended March 22 20- Earnings Taxable Earnings Deductions Federal Income Social Security Health No. of Marit. Allow. Status Cumulative Total Unemploy. Comp. Social Security Medicare Tax Other Net Pay ck. No. Name Regular Overtime Total Tax Tax City Tax Insurance Total Bacon, Andrea 4 . Cole, Andrew 1 S Hicks, Melvin 3 M Leung, Cara 1 S Melling, Melissa 2 2 M 2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. Page: 1 DATE DOC. POST. ACCOUNT TITLE DEBIT CREDIT NO. REF. 2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20- Mar. 24 1 1 2 2 3 3 4 4 5 5 6 on 7 7 8 8 9 9 10 Payroll for week ended March 22 10
