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, 2019,
City Place Movie Theaters has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30, 2019, 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 $ 11.30 M 1 $ 17,490 Roma Benson 49 10.00 M 4 16,825 Frank Cortez 40 9.80 M 1 15,930 Winter Wise 52 9.30 S 2 14,510 Required: 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 $122,700 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. Total and prove the payroll register. Prepare a general journal entry to record the payroll for the week ended June 30, 2019. Record the general journal entry to summarize payment of the payroll on July 3, 2019. Analyze: What are Andy Andersons cumulative earnings on June 30, 2019?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started