Prepare Payroll Register and Employees' Earnings Records for the two week period ended December 12 and journalize entry.

Name / Prior Cumulative / Hours / Pay Rate / Medical Insurance

B. Jones/ $6,600.00 / 40 / $7.00 /$15.00

K. Smith/ $8,256.00 / 47 / $8.00 /$15.00

J. Perry/ $19,825.00 / 82 / $10.00 / $15.00

W. Johnson/ $115,200.00 / 80 / $60.00 / $15.00

a. All hours worked in excess of 40 per week (or 80 in a two week period) are paid at the rate of 1.5 times the normal hourly rate.

(Assume any hours worked less than 80 do not qualify for overtime pay.)

b. Unemployment taxed are computed on the basis of .6% of the first $7,000 in earnings (Federal); 3.4% of the first $7,000 in earnings (State)

c. FICA taxes are computed on the basis of 6.2% of the first $118,500 in earnings for Social Security; 1.45% of all earnings for Medicare

d. Federal Income Taxes should be determined by using the marital status and number of withholding allowances information on the Employee's Individual Earnings Records and the Federal Income Tax Withholding Table

e. State Income Taxes are based upon 25% of the Federal Income Tax

f. Payroll is paid through a special payroll bank account