Complete the Payroll Register for the February and March biweekly pay periods, assuming benefits went into effect as anticipated. Use the Wage Bracket Method Tables for Income Tax Withholding in Appendix C. Complete the General Journal entries as follows:

February 10	Journalize the employee pay.
February 10	Journalize the employer payroll tax for the February 10 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employees will exceed the FUTA or SUTA wage base.
February 13	Issue the employee pay.
February 24	Journalize the employee pay.
February 24	Journalize the employer payroll tax for the February 24 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employee will exceed the FUTA or SUTA wage base.page 343
February 27	Issue the employee pay.
March 10	Journalize employee pay.
March 10	Journalize employer payroll tax for the March 10 pay period. Use 5.4% SUTA and 0.6% FUTA. No employees will exceed the FUTA or SUTA wage base.
March 14	Issue employee pay.
March 24	Journalize employee pay.
March 24	Journalize employer payroll tax for the March 24 pay period. Use 5.4% SUTA and 0.6% FUTA. No employees will exceed FUTA or SUTA wage base.
March 28	Issue employee pay.

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Post all journal entries to the appropriate General Ledger accounts.

Account: Cash

101

Account: Employee Federal Income Tax Payable

203

Account: Social Security Tax Payable

204

Account: Medicare Tax Payable

205

Account: Employee State Income Tax Payable

206

Account: 401(k) Contributions Payable

208

Account: Health Insurance Payable

209

Account: Salaries and Wages Payable

210

Account: FUTA Tax Payable

211

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Account: SUTA Tax Payable

212

Account: Payroll Taxes Expense

514

Account: Salaries and Wages Expense

515

Answers to Stop & Check Exercises

Employees Earnings Records

1. The payroll register contains the period payroll information for all employees. The employees earnings record lists all payroll data for a single employee.

2. All fields exist on both the employees earnings records and the payroll register.

3. Quarterly and annual tax reports use the totals from the employees earnings records.

Financial Accounting Concepts

1. Assets = Liabilities + Owners Equity

2. Credit

3. Debit

Payroll and the General Journal

1. Wages and Salaries Expense

2. Account	Debit	Credit
   Payroll Taxes Expense	$9,546.05
   Social Security Tax Payable		$7,736.67
   Medicare Tax Payable		$1,809.38

3. page 347

   	Debit	Credit
   Federal Income Tax Payable	$15,280.00
   Social Security Tax Payable	$2,653.29
   Medicare Tax Payable	$620.53
   State Income Tax Payable	$1,626.21
   Wages and Salaries Payable	$22,614.97
   Wages and Salaries Expense		$42,795.00

General Ledger Entries

1. $2,760 Cr.

2. The transaction may be found in the General Journal on page 34.

The Business Effects of Payroll

1. The payment of employee wages decreases profitability because it increases the expenses of a business.

2. Allocation of payroll expenses to specific jobs, clients, and so on allows the company to understand the costs associated with the activity.

Labor Reports

1. 1. Trial balance

   2. Statement of owners equity

   3. Income summary

   4. Balance sheet

2. Labor reports

3. Trend reports are used by managers to identify business patterns, needs, and opportunities.