Nashville Publishing Company pays its employees monthly. Payments made by the company on October 31, 2019, follow. Cumulative amounts paid to the persons named prior to October 31 are also given.

1. Paul Parker, president, gross monthly salary of $20,000 gross earnings prior to October 31, $160,000.
2. Carolyn Wells, vice president, gross monthly salary of $15,000 gross earnings paid prior to October 31, $150,000.
3. Michelle Clark, independent accountant who audits the companys accounts and performs consulting services, $16,500 gross amounts paid prior to October 31, $42,500.
4. James Wu, treasurer, gross monthly salary of $6,000 gross earnings prior to October 31, $60,000.
5. Payment to Editorial Publishing Services for monthly services of Betty Jo Bradley, an editorial expert, $6,000 amount paid to Editorial Publishing Services prior to October 31, 2019, $34,000.

Required:

1. Use an earnings ceiling of $122,700 for social security taxes and a tax rate of 6.2 percent and a tax rate of 1.45 percent on all earnings for Medicare taxes. Prepare a schedule showing the following information:
   1. Each employees cumulative earnings prior to October 31.
   2. Each employees gross earnings for October.
   3. The amounts to be withheld for each payroll tax from each employees earnings; the employees income tax withholdings are Paul Parker, $5,600 Carolyn Wells, $4,200 James Wu, $1,320.
   4. The net amount due each employee.
   5. The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees.
2. Prepare the general journal entry to record the companys payroll on October 31.
3. Prepare the general journal entry to record payments to employees on October 31.

Journal entry worksheet

• Record the company's payroll to be paid at a later date.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Oct 31, 2019	Employee income tax payable
	Medicare tax payable

Journal entry worksheet

• Record the entry to summarize payment of the payroll.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Oct 31, 2019