CHAPTER 7. Pol Pot 7-69 Payroll Accounting 2020 Name Project Audit Test NOVEMBER 6 PAYROLL: (As you complete your work, answer the following questions for the November 4 through November 6 payroll.) Payroll Register 1. What is the amount of FIT withheld for Joseph T. O'Neill? 150 2. What is the total gross pay for all employees? 16267.72 3. What is the total amount of CIT withheld for all employees? 631.33 4. What is the total net pay for all employees? 2003 Journal 5. What is the amount of the credit to FICA Taxes Payable-OASDI for employees? 2008.61 6. What is the amount of the credit to FICA Taxes Payable-HI for employees? ............. 7. What is the amount of the debit to Payroll Taxes? 8. What is the amount of the debit to Employees SIT Payable on November 47 192.02 General Ledger 9. What is the balance in the Cash (account number 11) account? 10. What is the amount of Sales Salaries paid to date? 335.09 2230 + 350 Name Project Audit Test NOVEMBER 13 PAYROLL: (As you complete your work, answer the following questions for the November 4 through the special November 13 payroll.) Payroll Register 1. What is the amount of FIT withheld for Ruth V. Williams! 2. What is Ruth V. Williams' current net pay..... 3. What is the amount of CIT withheld for Ruth V. Williams? 4. What is Ruth V. Williams' marital status?........ Journal 5. What is the amount of Ruth V. Williams' Group Insurance withheld? 6. What is the amount of the debit to Payroll Taxes? General Ledger 7. What is the total amount of Payroll Taxes (account number 56) to date? 8. What is the balance in the FICA Taxes Payable-HI account? 9. What is the balance in the Cash Account? 10. What is the balance in the Employees FIT Payable account? 7-12 CHAPTER 7 - Payroll LO 3 Joumice and post payroll and payroll taxentries Make the entry transferring from Cush to Payroll Cash the net amount Post the required information from the payroll register to each Record in the journal the salaries, wages, taxes withheld, group insur- ance premiums collected, union dues withheld, and net amount paid, employee's earnings record. PAY POINTS The employees' Pennsylvania State Unemployment Tax ISUTA) is calculated (00006) on the total wages of each employee. There is no taxable wage limit on the employees portion of the tax and post to the proper ledger accounts. The entry required to record the October 23 payroll is the same as that to record the October 9 payroll, except it is necessary to record the la bility for the amount withheld from the employees' wages to pay their recorded as a credit to Group Insurance Premiums Collected. part of the group insurance premium. The amount withheld should be Record in the journal the employer's payroll taxes and the liabilities created; post to the appropriate ledger accounts. PAY POINTS Be sure to deduct 300 premium for each $1.000 of group insurance carried by each employee (last payday of each month) November 4 No. 4 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the October 23 payroll and complete information worksheet. No. S Virginia Russell completed a new Form W-4, changing the number of withholding allowances to 2. Change Russell's earnings record (her mar- ital status has not changed). No. 6 Thomas). Sokowski completed a new Form W-4, showing that his mar. ital status changed to single and that the number of withholding allow- ances remains at 2. Change Sokowski's carnings record accordingly. No. 7 Dewey Mann completed a new Form W-4, leaving his marital status as married but dropping the number of withholding allowances to 0. Change Mann's earnings record accordingly. November 6 PROJECT AUDIT TEST Net Paid $12,180.03 No. 8 Pay the treasurer of the union the amount of union dues withheld during the month of October Time Lost Time Clerk's Report No. 42 For the Week Ending October 24, 20. Time Record Time Employee S M T W T F S Worked Bonno, A. V 8 8 8 8 8 40 hrs. Ford, C. 8 8 8 8 8 40 hrs. Russell A. 8 8 8 8 6 38 hrs. Ryan. NA... 8 8 8 8 8 40 hrs. Student 8 8 8 8 Williams, R. V.. 36 hrs. 8 8 8 7 8 39 hrs. Timelt on account of family function: deduct 2 hours' pay Teel because of tax deduct 1 hour's pay 2 hrs." 4 1 h Payroll Accounting 2020 CHAPTER 7. Payroll Project 7.13 Time Clerk's Report No. 43 For the Week Ending October 31, 20 Employee Time Record S MT F S Bonn, A. V 8 Ford. C.L... 8 8 8 Russell, V. A. ... 8 Ryan, N. A 8 8 8 8 8 Student 8 8 8 8 4 Williams, R. V.. 8 8 8 8 8 Time World Time Lost 40 hrs. 40 hrs. 40 hrs 40 hrs. 36 hes 40 hrs - PAY POINTS No.9 Prepare the payroll for the first pay period in November from Time Clerk Report Nos. 42 and 43 and record the paychecks issued to all employees. Record this payroll at the top of the second payroll register sheet. Note: Virginia Russell worked only 38 hours in the week ending Octo- ber 24. Therefore, compute her pay for that week by multiplying 38 by $15.00 (her hourly rate). Ruth Williams worked only 39 hours in the week ending October 24. Therefore, compute her pay for that week by multiplying 39 by $15.29 (her hourly rate). Also, record the employer's payroll taxes. Make changes in November 6 pay. Refer to Nos 5,6 and 7 PROJECT AUDIT TEST Net Paid $ 1,494.06 November 13 No. 10 Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth Williams today. For the week ending Novem- ber 7, she was late a total of six hours; and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks' notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending Novem- ber 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is $856.24. Record a separate payroll register (on one line) to show Williams's total earnings, deductions, and net pay. The two weeks' dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams. The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams's discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Wil- liams's discharge on this date. Prepare the journal entries to transfer the net cash and to record Wil. liams's final pay and the employer's payroll taxes. Post to the ledger accounts. Use the blank Form W-2 on page 7-59. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify PAY POINTS Prepare a Wage and Tax Statement, Form W-2 to be given to Williams individual Forms W-2. CHAPTER 7. Pol Pot 7-69 Payroll Accounting 2020 Name Project Audit Test NOVEMBER 6 PAYROLL: (As you complete your work, answer the following questions for the November 4 through November 6 payroll.) Payroll Register 1. What is the amount of FIT withheld for Joseph T. O'Neill? 150 2. What is the total gross pay for all employees? 16267.72 3. What is the total amount of CIT withheld for all employees? 631.33 4. What is the total net pay for all employees? 2003 Journal 5. What is the amount of the credit to FICA Taxes Payable-OASDI for employees? 2008.61 6. What is the amount of the credit to FICA Taxes Payable-HI for employees? ............. 7. What is the amount of the debit to Payroll Taxes? 8. What is the amount of the debit to Employees SIT Payable on November 47 192.02 General Ledger 9. What is the balance in the Cash (account number 11) account? 10. What is the amount of Sales Salaries paid to date? 335.09 2230 + 350 Name Project Audit Test NOVEMBER 13 PAYROLL: (As you complete your work, answer the following questions for the November 4 through the special November 13 payroll.) Payroll Register 1. What is the amount of FIT withheld for Ruth V. Williams! 2. What is Ruth V. Williams' current net pay..... 3. What is the amount of CIT withheld for Ruth V. Williams? 4. What is Ruth V. Williams' marital status?........ Journal 5. What is the amount of Ruth V. Williams' Group Insurance withheld? 6. What is the amount of the debit to Payroll Taxes? General Ledger 7. What is the total amount of Payroll Taxes (account number 56) to date? 8. What is the balance in the FICA Taxes Payable-HI account? 9. What is the balance in the Cash Account? 10. What is the balance in the Employees FIT Payable account? 7-12 CHAPTER 7 - Payroll LO 3 Joumice and post payroll and payroll taxentries Make the entry transferring from Cush to Payroll Cash the net amount Post the required information from the payroll register to each Record in the journal the salaries, wages, taxes withheld, group insur- ance premiums collected, union dues withheld, and net amount paid, employee's earnings record. PAY POINTS The employees' Pennsylvania State Unemployment Tax ISUTA) is calculated (00006) on the total wages of each employee. There is no taxable wage limit on the employees portion of the tax and post to the proper ledger accounts. The entry required to record the October 23 payroll is the same as that to record the October 9 payroll, except it is necessary to record the la bility for the amount withheld from the employees' wages to pay their recorded as a credit to Group Insurance Premiums Collected. part of the group insurance premium. The amount withheld should be Record in the journal the employer's payroll taxes and the liabilities created; post to the appropriate ledger accounts. PAY POINTS Be sure to deduct 300 premium for each $1.000 of group insurance carried by each employee (last payday of each month) November 4 No. 4 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the October 23 payroll and complete information worksheet. No. S Virginia Russell completed a new Form W-4, changing the number of withholding allowances to 2. Change Russell's earnings record (her mar- ital status has not changed). No. 6 Thomas). Sokowski completed a new Form W-4, showing that his mar. ital status changed to single and that the number of withholding allow- ances remains at 2. Change Sokowski's carnings record accordingly. No. 7 Dewey Mann completed a new Form W-4, leaving his marital status as married but dropping the number of withholding allowances to 0. Change Mann's earnings record accordingly. November 6 PROJECT AUDIT TEST Net Paid $12,180.03 No. 8 Pay the treasurer of the union the amount of union dues withheld during the month of October Time Lost Time Clerk's Report No. 42 For the Week Ending October 24, 20. Time Record Time Employee S M T W T F S Worked Bonno, A. V 8 8 8 8 8 40 hrs. Ford, C. 8 8 8 8 8 40 hrs. Russell A. 8 8 8 8 6 38 hrs. Ryan. NA... 8 8 8 8 8 40 hrs. Student 8 8 8 8 Williams, R. V.. 36 hrs. 8 8 8 7 8 39 hrs. Timelt on account of family function: deduct 2 hours' pay Teel because of tax deduct 1 hour's pay 2 hrs." 4 1 h Payroll Accounting 2020 CHAPTER 7. Payroll Project 7.13 Time Clerk's Report No. 43 For the Week Ending October 31, 20 Employee Time Record S MT F S Bonn, A. V 8 Ford. C.L... 8 8 8 Russell, V. A. ... 8 Ryan, N. A 8 8 8 8 8 Student 8 8 8 8 4 Williams, R. V.. 8 8 8 8 8 Time World Time Lost 40 hrs. 40 hrs. 40 hrs 40 hrs. 36 hes 40 hrs - PAY POINTS No.9 Prepare the payroll for the first pay period in November from Time Clerk Report Nos. 42 and 43 and record the paychecks issued to all employees. Record this payroll at the top of the second payroll register sheet. Note: Virginia Russell worked only 38 hours in the week ending Octo- ber 24. Therefore, compute her pay for that week by multiplying 38 by $15.00 (her hourly rate). Ruth Williams worked only 39 hours in the week ending October 24. Therefore, compute her pay for that week by multiplying 39 by $15.29 (her hourly rate). Also, record the employer's payroll taxes. Make changes in November 6 pay. Refer to Nos 5,6 and 7 PROJECT AUDIT TEST Net Paid $ 1,494.06 November 13 No. 10 Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth Williams today. For the week ending Novem- ber 7, she was late a total of six hours; and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks' notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending Novem- ber 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is $856.24. Record a separate payroll register (on one line) to show Williams's total earnings, deductions, and net pay. The two weeks' dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams. The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams's discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Wil- liams's discharge on this date. Prepare the journal entries to transfer the net cash and to record Wil. liams's final pay and the employer's payroll taxes. Post to the ledger accounts. Use the blank Form W-2 on page 7-59. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify PAY POINTS Prepare a Wage and Tax Statement, Form W-2 to be given to Williams individual Forms W-2
