Information ABC Company Number of Employees 7 Employee Name Hours worked Hourly rate

John Doe 40 $25.00 Jane Jones 40 $25.00 Jessie Smith 40 $18.00 Erik Ackers 25 $15.00 Nan Schmit 30 $17.00 Larry Johnson 35 $18.00 Christopher Hay 40 $18.00

Assume Federal Income Tax will be withheld at a rate of 20% for everyone. FICA Social Security rate is 6.2% and Medicare is 1.45%. When you called your State, they told you that your State Unemployment tax rate would be 5.4%. Recall that the Federal Unemployment rate is the same for all businesses.

Required: Complete the Payroll Report worksheet Use the Transactions worksheet to complete your Journal Required: Complete the payroll report below using the information provided on the Information tab. January

Employee Name Hours worked Hourly rate Gross Pay Federal Withholding Social Security Medicare Net

John Doe 40 $25.00 $1,000.00 $200.00 $62.00 $54.00 $684.00 Jane Jones 40 $25.00 $1,000.00 $200.00 $62.00 $54.00 $684.00

Jessie Smith 40 $18.00 $720.00 $144.00 $44.64 $38.88 $492.48

Erik Ackers 25 $15.00 $375.00 $75.00 $23.25 $20.25 $256.50

Nan Schmit 30 $17.00 $510.00 $102.00 $31.62 $27.54 $348.84

Larry Johnson 35 $18.00 $630.00 $126.00 $39.06 $34.02 $430.92

Christopher Hay 40 $18.00 $720.00 $144.00 $44.64 $38.88 $492.48

Totals 250 $136.00 $4,955.00 $991.00 $307.21 $267.57 $3,389.22

Required: Use the transactions below to complete your Journal on the next worksheet. Tip: Refer to pages 473-476 of your text for examples. Transactions January 1 Record accrued payroll for January using the Payroll Report 2 Record employer payroll taxes for the same Payroll Report (hint - remember to record FUTA and SUTA as well) 7 Record payment of cash to employees. Required: Enter the journal entries from the transactions found on the Transaction worksheet Journal Entries Date Account Title Debit Credit