Payroll Register and Payroll Journal Entry

1. Prepare a payroll register for Marys Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns. Round your answers to the nearest cent.

2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank.

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 below. 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	$12	$5,520
Cole, Andrew	1	S	40	12	5,900
Hicks, Melvin	3	M	43	10.5	5,100
Leung, Cara	1	S	35	11	5,073.5
Melling, Melissa	2	M	40	10.5	4,705.5

Social Security tax is withheld from the first $118,500 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 $14 withheld and Cole and Hicks have $6 withheld for health insurance. Bacon and Leung have $21 withheld to be invested in the travel agencys credit union. Cole has $39.75 withheld and Hicks has $18.25 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.

. Prepare a payroll register for Marys Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns. Round your answers to the nearest cent.

			Payroll Register for Period Ended											March 22		20--
			Earnings				Taxable Earnings		Deductions
Name	No. Allow.	Marit. Status	Regular	Overtime	Total	Cumulative Total	Unemploy. Comp.	Social Security	Federal Income Tax	Social Security Tax	Medicare Tax	City Tax	Health Insurance	Other		Total	Net Pay	Ck. No.

2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank.

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	Mar. 24	CashCredit union payableEmployee federal income tax payableMedicare tax payableSocial security tax payableWages and salaries expense	blank	blank	- Select -	- Select -	1
2	blank	City tax expenseEmployee federal income tax payableHealth insurance premiums expenseMedicare tax expenseSocial security tax expenseWages and salaries payable	blank	blank	- Select -	- Select -	2
3	blank	Credit union expenseEmployee income tax expenseHealth insurance premiums expenseSocial security tax payableU.S. savings bonds expenseWages and salaries payable	blank	blank	- Select -	- Select -	3
4	blank	City tax expenseEmployee income tax expenseHealth insurance premiums expenseMedicare tax payableU.S. savings bonds expenseWages and salaries payable	blank	blank	- Select -	- Select -	4
5	blank	City tax payableCredit union expenseHealth insurance premiums expenseMedicare tax expenseSocial security tax expenseWages and salaries payable	blank	blank	- Select -	- Select -	5
6	blank	Credit union expenseEmployee income tax expenseHealth insurance premiums payableMedicare tax expenseU.S. savings bonds expenseWages and salaries payable	blank	blank	- Select -	- Select -	6
7	blank	City tax expenseCredit union payableMedicare tax expenseSocial security tax expenseU.S. savings bonds expenseWages and salaries payable	blank	blank	- Select -	- Select -	7
8	blank	City tax expenseEmployee income tax expenseHealth insurance premiums expenseSocial security tax expenseU.S. savings bonds payableWages and salaries payable	blank	blank	- Select -	- Select -	8
9	blank	CashCredit union expenseEmployee income tax expenseMedicare tax expenseSocial security tax expenseWages and salaries expense	blank	blank	- Select -	- Select -	9
10	blank	Payroll for week ended March 22	blank	blank	blank	blank	10