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City Place Movie Theaters has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30,
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. Employee Andy Anderson Regular Hours Worked 47 Roma Benson 48 M Hourly Marital Withholding Cumulative Rate Status Allowances Earnings $10.80 M $17,440 9.50 1 16,775 Frank Cortez winter wise 40 9.30 M 1 51 8.80 S 2 15,880 14,460 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). Finally compute the net pay of each employee. (Round your intermediate calculations and final answers to 2 decimal places.) Payroll register Week beginning: June 24 And ending: June 30 Earnings Employee Regular time earnings Overtime earnings Gross amount Cumulative earnings Taxable wages Social security Deductions Paid: July 3 Distribution Medicare Social security Medicare Income tax Net amount Wages expense Andy Anderson $ 432.00 $113.40 $ 380.00 372.00 114.00 545.40 $17,985.40 S 545.40 $545.40 $ 494.00 17,269.00 494.00 494.00 33.81 $ 7.91 $ 36.00 $ 352.00 0.00 145.20 372.00 Roma Benson Frank Cortez Winter Wise 372.00 16,252.00 497.20 14,957.20 $1.536.00 $ 372.60 $ 1,908.50 $66,463.60 1,658.60 $ 0.00 How do I calculate wages epense? I tried adding SS, Medicare and Income tax together thinking that was the answer and it is not. All other calculations are correct (I can check my work). 30.63 7.16 10.00 467.68 446.21 372.00 23.06 5.39 16.00 327.55 497 20 497 20 $1,908.60 $1,908.60 S 118.33 $ 30.83 7.21 42.00 417.16 27.67 $104.00 $ Prepare a general journal entry to record the payroll expenses and also summarize payment of the payroll for the week ended June 30, and July 3. (Round your intermediate calculations and final answers to 2 decimal places.) Record the company's payroll to be paid at a later date. Note: Enter debits before credits. Date June 30 General Journal Debit Credit Record the entry to summarize payment of the payroll. Note: Enter debits before credits.. Date July 03 General Journal Dropdown Options for Both Journal Entries Cash Employee income tax payable Interest expense Prepaid expenses Rent expense Sales tax payable Interest payable Debit Credit Social security tax payable Medicare tax payable Utilities expense Notes payable Petty cash Wages expense Wages payable What are Andy Anderson's cumulative earnings on June 30? (Round your intermediate calculations and final answer to 2 decimal places.) Cumulative earnings Show less
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