No. 1 Chapter 7: Payroll Project: 7-3a October 9, 20 1. The first payroll in October covered the two workweeks that ended on September 26 and October 3. This payroll transaction has been entered for you in the payroll register, the employees' earnings records, the general journal, and the general ledger. By reviewing the calculations of the wages and deductions in the payroll register and the posting of the information to the employees' earnings records, you can see the procedure to be followed each payday. Wages and salaries are paid by issuing special payroll checks. When the bank on which they are drawn receives such checks, they will be charged against the payroll cash account. Observe the following rules in computing earnings each pay period: 1. Do not make any deduction from an employee's earnings if the employee loses less than 15 minutes of time in any day. Time lost that exceeds 15 minutes is rounded to the nearest quarter- hour and deducted. If the time lost by an employee is not to be deducted, the time clerk will make a notation to that effect on the Time Clerk's Report. 2. In completing the time record columns of the payroll register for all workers, you should place an 8 in the day column for each full day worked (refer to page PR-2 at the end of the book). If an employee works less than a full day, show the actual hours for which the employee will be paid. 3. In the case of an employee who begins work during a pay period, compute the earnings by paying the employees their weekly rate for any full week worked. For any partial week, compute the earnings for that week by multiplying the hours worked by the hourly rate of pay. 4. If time lost is to be deducted from a salaried employee's pay, the employee's pay must be determined by multiplying the actual hours worked for that week by the hourly rate. If hours are missed but no pay is deducted, include those hours in the Time Record columns on the payroll register. The following schedule shows the weekly and hourly wage rates of the salaried employees: Employee Weekly Rate Hourly Rate Ferguson, James C. $1,125.00 $28.13 Ford, Catherine L. 610.00 15.25 Mann, Dewey W. 675.00 16.88 O'Neill, Joseph T. 2,307.69 28.85 Russell, Virginia A. 600.00 15.00 Sokowski, Thomas J. 1,025.00 25.63 Williams, Ruth V. 611.54 15.29 No. 1 Chapter 7: Payroll Project: 7-3a October 9, 20 1. The first payroll in October covered the two workweeks that ended on September 26 and October 3. This payroll transaction has been entered for you in the payroll register, the employees' earnings records, the general journal, and the general ledger. By reviewing the calculations of the wages and deductions in the payroll register and the posting of the information to the employees' earnings records, you can see the procedure to be followed each payday. Wages and salaries are paid by issuing special payroll checks. When the bank on which they are drawn receives such checks, they will be charged against the payroll cash account. Observe the following rules in computing earnings each pay period: 1. Do not make any deduction from an employee's earnings if the employee loses less than 15 minutes of time in any day. Time lost that exceeds 15 minutes is rounded to the nearest quarter- hour and deducted. If the time lost by an employee is not to be deducted, the time clerk will make a notation to that effect on the Time Clerk's Report. 2. In completing the time record columns of the payroll register for all workers, you should place an 8 in the day column for each full day worked (refer to page PR-2 at the end of the book). If an employee works less than a full day, show the actual hours for which the employee will be paid. 3. In the case of an employee who begins work during a pay period, compute the earnings by paying the employees their weekly rate for any full week worked. For any partial week, compute the earnings for that week by multiplying the hours worked by the hourly rate of pay. 4. If time lost is to be deducted from a salaried employee's pay, the employee's pay must be determined by multiplying the actual hours worked for that week by the hourly rate. If hours are missed but no pay is deducted, include those hours in the Time Record columns on the payroll register. The following schedule shows the weekly and hourly wage rates of the salaried employees: Employee Weekly Rate Hourly Rate Ferguson, James C. $1,125.00 $28.13 Ford, Catherine L. 610.00 15.25 Mann, Dewey W. 675.00 16.88 O'Neill, Joseph T. 2,307.69 28.85 Russell, Virginia A. 600.00 15.00 Sokowski, Thomas J. 1,025.00 25.63 Williams, Ruth V. 611.54 15.29
