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City Place Movie Theaters has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30, these employees worked the hours shown below. Information about hourly rates, marital status, withholding allowances, and cumulative earnings prior to the current pay period also appears below. Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate. Regular Hourly Marital Withholding Cumulative Employee Hours Worked Rate Status Allowances Earnings Andy Anderson 47 * $17,620 Roma Benson 48 16,955 Frank Cortez 11.00 16.060 Winter Wine 51 10.50 14,640 $12.50 11.30 40 M M S Required: 1. Enter the basic payroll Information for each employee in a payroll register. Record the employee's name, number of withholding allowances, marital status, total and overtime hours, and regular hourly rate. Note: Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate 2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register . 3. Compute the amount of social security tax to be withheld from each employee's earnings, Assume a 6.2 percent social security rate on the first $122,700 earned by the employee during the year. Enter the figures in the payroll register 4. Compute the amount of Medicare tax to be withheld from each employee's earnings. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register. 5. Determine the amount of federal income tax to be withheld from each employee's total earnings. Use the tax tables in Figure 10:20 & Figure 102b. Enter the figures in the payroll register 6. Compute the net pay of each employee and enter the figures in the payroll register. 7. Prepare a general Journal entry to record the payroll for the week ended June 30. 8. Record the general Journal entry to summarize payment of the payroll on July 3. Analyze: What are Andy Anderson's cumulative earnings on June 30, 20X1? Compute the regular, overtime, gross earnings, social security tax and Medicare tax to be withheld from each employee's earnings. Assume a 6.2 percent social security rate on the first $122,700 earned by the employee during the year. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Determine the amount of federal income tax to be withheld from each employee's total earnings. Finally compute the net pay of each employee. (Round your intermediate calculations and final answers to 2 decimal places.) Payroll register And ending: June 30 Taxable wages Pald: July 3 Distribution Deductions Week beginning: June 24 Earnings Regular Overtime time Gross amount earnings warnings Employee Cumulative earnings Social security Medicare Social security Medicare Income tax Net amount Wages expenso Andy Anderson Roma Benson Frank Cortez Winter Wise $ 0.00 $ 0.00 $ 0.00 $ 0.005 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.005 0.00 General Journal >
