Delta Company pays salaries and wages on the last day of each month. Payments made on December 31, 20X1, for amounts incurred during December are shown below. Cumulative amounts paid prior to the December 31 payroll for the persons named are also shown.

1. Francis Fisher, president, gross monthly salary, $11,940; gross earnings paid prior to December 31, $131,340.
2. Sandy Swartz, vice president, gross monthly salary, $10,450; gross earnings paid prior to December 31, $104,500.
3. Juan Rios, independent accountant who audits the companys accounts and performs certain consulting services, $10,450; gross amount paid prior to December 31, $26,125.
4. Harry House, treasurer, gross monthly salary, $5,650; gross earnings paid prior to December 31, $62,150.
5. Payment to Daily Security Services for Eddie Martin, a security guard who is on duty on Saturdays and Sundays, $1,090; amount paid to Daily Security Services prior to December 31, $10,900.

Required:

1. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Assume a 6.2 percent social security rate on the first $132,900 earned by the employee during the year and prepare a schedule showing the following information:
   1. Each employees cumulative earnings prior to December 31.
   2. Each employees gross earnings for December.
   3. The amounts to be withheld for each payroll tax from each employees earnings (employee income tax withholdings for Fisher are $3,140; for Swartz, $2,560; and for House, $860).
   4. The net amount due each employee.
   5. The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees.
2. Record the general journal entry for the companys payroll on December 31.
3. Record the general journal entry for payments to employees on December 31.

Complete this question by entering your answers in the tabs below.

• Req 1
• Req 2 and 3
• Analyze

Assume a 6.2 percent social security rate on the first $132,900 earned by the employee during the year and prepare a schedule showing the following information: (Round your intermediate calculations and final answers to 2 decimal places.)

Employee	Cumulative Earnings	Monthly Pay	Social Security	Medicare	Employee Income Tax With Holding	Net Pay
Francis Fisherselected answer correct	$131,340.00selected answer correct	$11,940.00selected answer correct	$64.44selected answer incorrect	$174.00selected answer incorrect	$3,080.00selected answer incorrect	$8,002.00selected answer incorrect
Sandy Swartzselected answer correct	104,500.00selected answer correct	10,150.00selected answer incorrect	620.00selected answer incorrect	145.00selected answer incorrect	2,500.00selected answer incorrect	6,735.00selected answer incorrect
Juan Riosselected answer incorrect	26,125.00selected answer incorrect	10,000.00selected answer incorrect	620.00selected answer incorrect	145.00selected answer incorrect	not attempted	9,235.00selected answer incorrect
Harry Houseselected answer correct	62,150.00selected answer correct	5,500.00selected answer incorrect	341.00selected answer incorrect	79.75selected answer incorrect	800.00selected answer incorrect	4,279.25selected answer incorrect
Eddie Martinselected answer incorrect	10,900.00selected answer incorrect	1,000.00selected answer incorrect	52.00selected answer incorrect	14.50selected answer incorrect	not attempted	923.50selected answer incorrect
Totals	$335,015.00	$38,590.00	$1,697.44	$558.25	$6,380.00	$29,174.75

• Req 1