Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Karen Jolly operates a bakery called Karen's Cupcakes. She has five employees, all of whom are paid on a weekly basis. Karen's Cupcakes uses a

image text in transcribed
image text in transcribed
Karen Jolly operates a bakery called Karen's Cupcakes. She has five employees, all of whom are paid on a weekly basis. Karen's Cupcakes uses a payroll register, individual employee earnings records, and a general journal. Karen's Cupcakes uses a weekly federal income tax withholding table like the one in Figure 8-4 in the text. The payroll data for each employee for the week ended February 15, 20--, are given below. Employees are paid 11/2 times the regular rate for working over 40 hours a week. No. of Marital Total Hours Total Earnings Name Allowances Status Worked Feb. 9-15 Rate Jan. 1-Feb. 8 Barone, William 1 40 $14.00 $3,360.00 Hastings, Gene 4 M 45 15.00 3,870.00 Nitobe, Isako 3 M 46 12.00 3,168.00 Smith, Judy 2 M 42 13.00 3,276.00 Tarshis, Dolores 1 39 14.50 3,480.00 Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Hastings and Smith have $35 withheld and Nitobe and Tarshis have $15 withheld for health insurance. Nitobe and Tarshis have $25 withheld to be invested in the bakers' credit union. Hastings has $18.75 withheld and Smith has $43.75 withheld under a savings bond purchase plan. Karen's Cupcakes' payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with No. 365. Required: Prepare a payroll register for Karen's Cupcakes for the week ended February 15, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security

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

International Marketing

Authors: Philip R Cateora

14th Edition

0073380989, 9780073380988

More Books

Students also viewed these Economics questions

Question

Describe the criteria for an effective budget.

Answered: 1 week ago

Question

Context, i.e. the context of the information presented and received

Answered: 1 week ago