Question
City Place Movie Theaters has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30, these
City Place Movie Theaters has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30, these employees worked the hours shown below. Information about hourly rates, marital status, withholding allowances, and cumulative earnings prior to the current pay period also appears below. 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.
Regular | Hourly | Marital | Withholding | Cumulative | |||||||||||||||
Employee | Hours Worked | Rate | Status | Allowances | Earnings | ||||||||||||||
Andy Anderson | 48 | $ | 10.90 | M | 1 | $ | 17,450 | ||||||||||||
Roma Benson | 49 | 9.60 | M | 4 | 16,785 | ||||||||||||||
Frank Cortez | 40 | 9.40 | M | 1 | 15,890 | ||||||||||||||
Winter Wise | 53 | 8.90 | S | 2 | 14,470 | ||||||||||||||
Required:
Enter the basic payroll information for each employee in a payroll register. Record the employees name, number of withholding allowances, marital status, total and overtime hours, and regular hourly rate. Note: 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
Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register.
Compute the amount of social security tax to be withheld from each employees earnings. Assume a 6.2 percent social security rate on the first $132,900 earned by the employee during the year. Enter the figures in the payroll register.
Compute the amount of Medicare tax to be withheld from each employees 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.
Determine the amount of federal income tax to be withheld from each employees total earnings. Use the tax tables in Figure 10.2a & Figure 10.2b. Enter the figures in the payroll register.
Compute the net pay of each employee and enter the figures in the payroll register.
Prepare a general journal entry to record the payroll for the week ended June 30.
Record the general journal entry to summarize payment of the payroll on July 3.
Analyze: What are Andy Andersons cumulative earnings on June 30, 20X1?
ntermediate calculations and final answers to 2 decimal places.) N+000000000000000000000000000000000000000000000000000000000000000008 Journal entry worksheet Record the company's payroll to be paid at a later date. Note: Enter debits before credits. Journal entry worksheet Record the entry to summarize payment of the payroll. Note: Enter debits before credits. What are Andy Anderson's cumulative earnings on June 30 ? (Round your intermediate calculations and final answer to 2 decimal places.) ntermediate calculations and final answers to 2 decimal places.) N+000000000000000000000000000000000000000000000000000000000000000008 Journal entry worksheet Record the company's payroll to be paid at a later date. Note: Enter debits before credits. Journal entry worksheet Record the entry to summarize payment of the payroll. Note: Enter debits before credits. What are Andy Anderson's cumulative earnings on June 30 ? (Round your intermediate calculations and final answer to 2 decimal places.)Step by Step Solution
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