Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary's Luxury Travel. She has five employees, all of whom are

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary's 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. Mary's 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 shown. Employees are paid 1 times the regular rate for working over 40 hours a week. No. of Marital Name Total Hours Allowances Status Worked Mar. 16-22 Total Earnings Rate Jan. 1-Mar. 15 Bacon, Andrea 4 M 45 $12.00 $5,520.00 Cole, Andrew 1 S 40 12.00 5,900.00 Hicks, Melvin 3 M 44 10.50 5,100.00 Leung, Cara Melling, Melissa 1 S 37 2 M 40 11.00 13.00 5,111.00 4,705.00 Social Security tax is withheld from the first $128,400 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 $6 withheld for health insurance. Bacon and Leung have $19 withheld to be invested in the travel agency's credit union. Cole has $39.00 withheld and Hicks has $19.25 withheld under a savings bond purchase plan. Mary's Luxury Travel's payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423. Required: 1. Prepare a payroll register for Mary's 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. If required, round your answers to the nearest cent.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,

Volume 1, 2nd canadian Edition

176509739, 978-0176509736, 978-0176509743

More Books

Students also viewed these Accounting questions

Question

9. Prove that I-n --2 Answered: 1 week ago

Answered: 1 week ago

Question

(d) Prove that 0 Answered: 1 week ago

Answered: 1 week ago