Mary Losch operates a travel agency called Marys Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal.

Marys Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20, are given. Employees are paid 1 times the regular rate for working over 40 hours a week.

Name	No. of Allowances	Marital Status	Total Hours Worked Mar. 1622	Rate	Total Earnings Jan. 1Mar. 15
Bacon, Andrea	4	M	44	$14.00	$6,300.00
Cole, Andrew	1	S	40	15.00	6,150.00
Hicks, Melvin	3	M	44	13.50	5,805.00
Leung, Cara	1	S	36	14.00	5,600.00
Melling, Melissa	2	M	40	14.50	5,945.00

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. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agencys credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan.

Marys Luxury Travels payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423.