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	$5,600
Cole, Andrew	1	S	40	12	5,780
Hicks, Melvin	3	M	43	10.5	4,800
Leung, Cara	1	S	35	11	5,105.5
Melling, Melissa	2	M	40	10.5	4,704.5

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 $16 withheld and Cole and Hicks have $5 withheld for health insurance. Bacon and Leung have $18 withheld to be invested in the travel agencys credit union. Cole has $39.75 withheld and Hicks has $18.75 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.

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.

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.

Bacon, Andrea

4

M

Credit Union

Cole, Andrew

1

S

Bonds

Hicks, Melvin

3

M

Bonds

Leung, Cara

1

S

Credit Union

Melling, Melissa

2

M

. 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.

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	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	Mar. 24	Wages and salaries expense					1
2		Employee federal income tax payable					2
3		Social security tax payable					3
4		Medicare tax payable					4
5		City tax payable					5
6		Health insurance premiums payable					6
7		Credit union payable					7
8		U.S. savings bonds payable					8
9		Cash					9
10		Payroll for week ended March 22					10