Problem 10.2A (Static) Computing gross earnings, determining deductions, preparing payroll register, journalizing payroll transactions. LO 10-2, 10-3, 10-4, 10-5 Country Covers 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. Employee Roma Brandon Carlos Cortez Jane Jorgus Winter Wise Regular Hours Worked 48 40 48 50 Hourly Rate $11.50 11.20 12.70 10.70 Marital Status M M M S Withholding Allowances 4 1 1 2 Cumulative Earnings $16.975 16,080 17,640 14,660 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 $132,900 earned by the employee during the year. 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 5. Determine the amount of federal income tax to be withheld from each employee's total earnings. Use the tax tables in Figure 10.2a and Figure 10.2b. 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. Enter the figures in Analyze: What are Jane Jorgus's cumulative earnings on June 30, 20X1? Complete this question by entering your answers in the tabs below. Payroll Register General Journal Analyze 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 $1. 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 w employee's total earnings. (Use the table shown in Figure 10.2A & Figure 10.2B whichever is applicable). Finally compute the net pay of each employee. (Round your intermediate calcula to 2 decimal places.) Payroll register And ending: June 30, 20X1 Paid: July 3, 20X1 Distribution Taxable wages Deductions Week beginning: June 24, 20X1 Earnings Regular time Overtime Gross amount earnings earnings Employee Cumulative earnings Social security Medicare Social security Medicare Income tax Net amount Wages expense Roma Brandon Carlos Cortez Jane Jorgus Winter Wise Journal entry worksheet 1 2 Record the company's payroll to be paid at a later date. Note: Enter debits before credits. General Journal Debit Credit Date June 30, 20X1 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2. > Record the entry to summarize payment of the payroll. Note: Enter debits before credits. General Journal Debit Credit Date July 03, 20X1 Record entry Clear entry View general journal Analyze: What are Jane Jorgus's cumulative earnings on June 30, 20X1? Complete this question by entering your answers in the tabs below. Payroll General Register Journal Analyze What are Jane Jorgus's cumulative earnings on June 30, 20X1? (Round your intermediate calculations and final answer to 2 decimal places.). Cumulative earnings