Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the Continuing Payroll Problem B, presented at the end of succeeding chapters, you will gain experience in computing wages and salaries and preparing a

In the Continuing Payroll Problem B, presented at the end of succeeding chapters, you will gain experience in computing wages and salaries and preparing a payroll register for Olney Company, Inc., a newly formed corporation. At the end of subsequent chapters, the information will be presented so that the payroll register can be completed step by step as you proceed through the discussion material relating to that particular section of the payroll register. Olney Company is a small manufacturing firm located in Newtown, Pennsylvania. The company has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours. Wages are paid every Friday, with one weeks pay being held back by the company. Thus, the first payday for Olney Company is January 14 for the workweek ending January 8 (Saturday). The information below will be used in preparing the payroll for the pay period ending January 8, 20--.

Time Card No. Employee Name Hourly Wage or Salary 11 Rob A. Mangino $ 18.50 per hour 12 Inga C. Flores 19.25 per hour 13 Carson S. Palmetto 17.80 per hour 21 Randy F. Waters 20.70 per hour 22 Cathy T. Kroll 23.80 per hour 31 Carmen V. Ruppert 800 per week 32 William M. Scott 780 per week 33 Sarah A. Wickman 3,500 per month 51 Lucas T. Foley 4,500 per month 99 Marshal W. Olney 78,000 per year Ms. Carmen V. Ruppert prepares the time clerks report for each pay period. Her report for the first week of operations is given below. Using the payroll register for Olney Company, which is reproduced on a fold-out at the back of the book (PR-1), proceed as follows: 1. Enter each employees time card number and name in the appropriate columns. 2. Record the regular hours and the overtime hours worked for each employee, using the time clerks report as your reference. 3. Complete the Regular Earnings columns (Rate pe Hour and Amount) and the Overtime Earnings columns (Rate per Hour and Amount) for each hourly employee. For salaried workers, complete the Regular Earnings column and show the hourly overtime rate and earnings only if overtime was worked. 4. Record the Total Earnings for each employee by adding the Regular Earnings and the Overtime Earnings.

image text in transcribedimage text in transcribed

image text in transcribed

Continuing Payroll Problem-B OLNEY COMPANY, INC. PAYROLL REGISTER FOR PERIOD ENDING January 8, 20 - REGULAR EARNINGS OVERTIME EARNINGS DEDUCTIONS NET PAY TAXABLE EARNINGS OF WH WIMM HOURS WORKED 19 | RATE PER HOUR FICA CHECK GROUP HEALTH INSURANCE INSURANCE AMOUNT OASDI HI FIT SIT SUTA CIT SIMPLE NO. AMOUNT OASDI FUTA 0 $28.88 - RATE PER HOUR 40 $ 18.50 50 $ 19.25 38.5 $ 17.80 47 $ 20.70 40 $ 23.80 41.5 40 0 EMPLOYEE 11 Magino, R. 12 Flores, 1. 13 Palmetto, C. 21 Waters, R. 22 Kroll, C 31 Ruppert, C. 32 Scott, W. 33 Wickman, S. 51 Foley, L. 99 Olney, M. Totals $31.05 AMOUNT 740.00 962.50 * 685.30 972.90 952.00 800.00 780.00 3,500.00 4,500.00 78,000.00 91,892.70 TOTAL EARNINGS 740.00 962.50 685.30 972.90 * 952.00 800.00 780.00 3,500.00 4,500.00 * 0 $30.00 40 45 0 # II 40 #HHHHH SUTA JOURNAL Taxable Earnings Net FUTA Tax Rate DESCRIPTION DEBIT CREDIT Net FUTA DATE 20- Jan. 12 SUTA Tax SUTA Wages and Salaries FICA Taxes Payable - OASDI FICA Taxes Payable - HI Employees FIT Payable Employees SIT Payable Employees SUTA Payable Employees CIT Payable SIMPLE Deductions Payable Group Insurance Premiums Collected Health Insurance Premiums Collected Salaries Payable 12 Payroll Taxes FICA Taxes Payable - OASDI FICA Taxes Payable - HI FUTA Taxes Payable SUTA Taxes Payable 14 Salaries Payable Cash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

14th Canadian edition

134613112, 134835018, 9780134885254 , 978-0134613116

More Books

Students also viewed these Accounting questions

Question

In what ways are you similar to your closest friends?

Answered: 1 week ago