Exercise 9-19A Preparing payroll register and related entries LO P5

Stark Company has five employees. Employees paid by the hour earn $14 per hour for the regular 40-hour workweek and $19 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. b, c, d & e. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employers cash payment of the net payroll of part b. d. Record the employers payroll taxes including the contribution to the benefits plan. e. Pay all liabilities (except for the net payroll in part c) for this biweekly period.

FIT Current Period Gross Pay FUTA Withholding FICA S.S. Employee Cumulative Pay Employee (Excludes Current Period) Employee Net Pay Pay Type Pay Hours FICA Medicare Employee Plan Withholding Employee FICA Employer Plan Medicare Expense Employer $ 107.80 $ 350.00 SIT Withholding Gross Pay FICA S.S. Employer SUTA 96.10 Kathleen $ 126,850.00 Salary $ 7,000.00 $ 2,800.00 $ 620.00 0.00 $ 0.00 $ 3,026.00 96.10 107.80 700.00 112.00 7.80 90.52 22.48 73.00 Anthony 5,700.00 Salary 1,460.00 1,126.00 36.00 90.52 22.48 146.00 70.20 0.00 142.00 81.22 20.17 65.50 Nichole 960.11 1,120.00 190.00 1,120.00 41.00 0.00 81.22 20.17 131.00 80 10 80 6 75 2.10 76.51 19.00 61.70 Regular 16,700.00 Overtime Regular 6,650.00 Overtime Regular 5,250.00 Overtime Zoey 906.79 18.90 76.51 19.00 123.40 114.00 1,050.00 132.00 38.00 122.00 37.00 6.50 65.10 16.17 52.50 Gracie 757.23 56.70 65.10 16.17 105.00 $ 3,308.00 $ 16.40 $ 409.45 $ 185.62 $ 602.70 Totals $ 161,150.00 $ 10,744.00 6,776.13 772.00 145.80 409.45 185.62 1,205.40 Journal entry worksheet 1 2 3 4 5 Record the August 31 journal entry for the accrued biweekly payroll and related liabilities for deductions. Note: Enter debits before credits. General Journal Credit Date Aug 31 Debit 10,744.00 Salaries (or Wages) expense Employee fed. inc. taxes payable Employee state inc. taxes payable FICASocial sec. taxes payable FICAMedicare taxes payable Employee benefits plan payable Salaries (or Wages) payable 3,308.00 772.00 409.45 185.62 602.70 6,776.13 FIT Current Period Gross Pay FUTA Withholding FICA S.S. Employee Cumulative Pay Employee (Excludes Current Period) Employee Net Pay Pay Type Pay Hours FICA Medicare Employee Plan Withholding Employee FICA Employer Plan Medicare Expense Employer $ 107.80 $ 350.00 SIT Withholding Gross Pay FICA S.S. Employer SUTA 96.10 Kathleen $ 126,850.00 Salary $ 7,000.00 $ 2,800.00 $ 620.00 0.00 $ 0.00 $ 3,026.00 96.10 107.80 700.00 112.00 7.80 90.52 22.48 73.00 Anthony 5,700.00 Salary 1,460.00 1,126.00 36.00 90.52 22.48 146.00 70.20 0.00 142.00 81.22 20.17 65.50 Nichole 960.11 1,120.00 190.00 1,120.00 41.00 0.00 81.22 20.17 131.00 80 10 80 6 75 2.10 76.51 19.00 61.70 Regular 16,700.00 Overtime Regular 6,650.00 Overtime Regular 5,250.00 Overtime Zoey 906.79 18.90 76.51 19.00 123.40 114.00 1,050.00 132.00 38.00 122.00 37.00 6.50 65.10 16.17 52.50 Gracie 757.23 56.70 65.10 16.17 105.00 $ 3,308.00 $ 16.40 $ 409.45 $ 185.62 $ 602.70 Totals $ 161,150.00 $ 10,744.00 6,776.13 772.00 145.80 409.45 185.62 1,205.40 Journal entry worksheet 1 2 3 4 5 Record the August 31 journal entry for the accrued biweekly payroll and related liabilities for deductions. Note: Enter debits before credits. General Journal Credit Date Aug 31 Debit 10,744.00 Salaries (or Wages) expense Employee fed. inc. taxes payable Employee state inc. taxes payable FICASocial sec. taxes payable FICAMedicare taxes payable Employee benefits plan payable Salaries (or Wages) payable 3,308.00 772.00 409.45 185.62 602.70 6,776.13