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P11-3B Prepare payroll register and payroll entries. Otto Drug Store has four employees who are paid on an hourly basis plus time-and-a-half for all hours
P11-3B Prepare payroll register and payroll entries. | ||||||
Otto Drug Store has four employees who are paid on an hourly basis plus time-and-a-half for all hours | ||||||
worked in excess of 40 a week. Payroll data for the week ended February 15, 2014 are shown below. | ||||||
Employee | Hours Worked | Hourly Rate | Federal Income Tax withholdings | United Fund Contributions | ||
M. Dingler | 39 | $12.00 | $34 | $0 | ||
D. Patel | 42 | 12.00 | 20 | 10.00 | ||
L. Grimmett | 44 | 10.00 | 51 | 5.00 | ||
A. Bly | 46 | 10.00 | 36 | 5.00 | ||
The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment | ||||||
taxes,5.4%, and federal unemployment 0.8%. | ||||||
Instructions | ||||||
(a) Prepare a payroll register for the weekly payroll. | ||||||
(b) Journalize the payroll on February 15, 2014, and the accrual of employer payroll taxes. | ||||||
(c ) Journalize the payment of the payroll on February 16, 2014. | ||||||
(d) Journalize the remittance to the Federal Reserve bank on February 28, 2014, of the | ||||||
FICA and federal income taxes payable to the government. | ||||||
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . |
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