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Prepare a payroll register for Karens Cupcakes for the week ended February 15, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns, verify the totals, and rule with single and double lines.
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Assuming that the wages for the week ended February 15 were paid on February 17, prepare the journal entry for the payment of this payroll.
Karen Jolly operates a bakery called Karen's Cupcakes. She has five employees, all of whom are paid on a weekly basis. Karen's Cupcakes uses a payroll register, individual employee earnings records, and a general journal. Karen's Cupcakes uses a weekly federal income tax withholding table like the one in Figure 8-4. The payroll data for each employee for the week ended February 15, 20--, are given below. Employees are paid 142 times the regular rate for working over 40 hours a week. Name Rate No. of Allowances Marital Status Total Hours Worked Feb. 9-15 S 40 . Barone, William Hastings, Gene Nitobe, Isako Smith, Judy Tarshis, Dolores $14.00 15.00 12.00 13.00 14.50 Total Earnings Jan. 1-Feb. 8 $3,360.00 3,870.00 3,168.00 3,276.00 3,480.00 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. Hastings and Smith have $35 withheld and Nitobe and Tarshis have $15 withheld for health insurance. Nitobe and Tarshis have $25 withheld to be invested in the bakers' credit union. Hastings has $18.75 withheld and Smith has $43.75 withheld under a savings bond purchase plan. Karen's Cupcakes' payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with No. 365. Karen Jolly operates a bakery called Karen's Cupcakes. She has five employees, all of whom are paid on a weekly basis. Karen's Cupcakes uses a payroll register, individual employee earnings records, and a general journal. Karen's Cupcakes uses a weekly federal income tax withholding table like the one in Figure 8-4. The payroll data for each employee for the week ended February 15, 20--, are given below. Employees are paid 142 times the regular rate for working over 40 hours a week. Name Rate No. of Allowances Marital Status Total Hours Worked Feb. 9-15 S 40 . Barone, William Hastings, Gene Nitobe, Isako Smith, Judy Tarshis, Dolores $14.00 15.00 12.00 13.00 14.50 Total Earnings Jan. 1-Feb. 8 $3,360.00 3,870.00 3,168.00 3,276.00 3,480.00 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. Hastings and Smith have $35 withheld and Nitobe and Tarshis have $15 withheld for health insurance. Nitobe and Tarshis have $25 withheld to be invested in the bakers' credit union. Hastings has $18.75 withheld and Smith has $43.75 withheld under a savings bond purchase plan. Karen's Cupcakes' payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with No. 365
