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 $12.50 M $17,620 Roma Benson 48 16,955 Prank Cortez 40 11.00 16,060 Winter Wise 51 10.50 14,640 42 11.30 H M S Required: 1. Enter the basic payroll Information for each employee in a payroll register. Record the employee's 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 2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register. 3. Compute the amount of social security 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. Enter the figures in the payroll register. 4. Compute the amount of Medicare tox to be withheld from each employee's 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. 5. Determine the amount of federal income tax to be withheld from each employee's total earnings. Use the tax tables in Figure 10.22 & Figure 10.25. Enter the figures in the payroll register. 6. Compute the net pay of each employee and enter the figures in the payroll register. 7. Prepare a general Journal entry to record the payroll for the week ended June 30. 8. Record the general Journal entry to summarize payment of the payroll on July 3. Analyze: What are Andy Anderson's cumulative carnings on June 30, 20X12 Payroll Register General Journal Analyze 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.) View transaction list Journal entry worksheet Record the company's payroll to be paid at a later date. Note: Enter debits before credits General Journal Debit Credit Date June 30 Record entry Clear entry View general Journal Payroll Register General Journal Analyze 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.) View transaction ist Journal entry worksheet Record the entry to summarize payment of the payroll. Note: Enter debits before credits Date General Journal Debit Credit July 03 Record entry Clear entry View general Journal
