Scenario

You are the Payroll Accountant for Olney Company, Inc., a small manufacturing firm located in Chalfont Boro, PA. Your manager, Director of Human Resources, is in the process of determining if and when the company should transition to an electronic payroll system. She has directed you to complete the payroll for pay period ending January 8th. The Olney Company, Inc. has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours. Wages are paid every Friday, with one weeks pay being held back by the company. Thus, the first payday for Olney is January 14^th for the workweek ending January 8^th (Saturday). The information provided will be used in preparing the payroll for the pay period ending January 8^th. Ms. Carmen V. Ruppert prepares the time clerks report for each pay period. All employees, except for Marshall W. Olney, are paid for hours worked beyond 40 at one and one-half times their regular hourly rate of pay.

Directions: Complete the payroll cycle

FOR PERIOD ENDING January 8,20 - - \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ EMPLOYEE } & & & \multicolumn{3}{|c|}{ REGULAR EARNINGS } & \multicolumn{3}{|c|}{ OVERTIME EARNINGS } & \multirow[b]{2}{*}{\begin{tabular}{l} TOTAL \\ EARNINGS \end{tabular}} \\ \hline & & & & \begin{tabular}{c} RATE PER \\ HOUR \end{tabular} & AMOUNT & & \begin{tabular}{c} RATE PER \\ HOUR \end{tabular} & AMOUNT & \\ \hline Wilson, William A. & S & N/A & & & & & & & \\ \hline Utley, Harry T. & MFJ & N/A & & & & & & & \\ \hline Fay, Gretchen R. & MFJ & N/A & & & & & & & \\ \hline Hardy, Barbara T. & MFJ & N/A & & & & & & & \\ \hline Kipley, Carson C. & MFJ & N/A & & & & & & & \\ \hline Totals & & & & & & & & & \\ \hline \end{tabular} OLNEY COMPANY, INC. PAYROLL REGISTER \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ NET PAY } & \multicolumn{4}{|c|}{ TAXABLE EARNINGS } \\ \hline \begin{tabular}{c} CHECK \\ NO. \end{tabular} & AMOUNT & OASDI & HI & FUTA & SUTA \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} DATE DESCRIPTION DEBIT CREDIT 20-- Jan. 12 Wages and Salaries FICA Taxes Payable - OASDI FICA Taxes Payable - HI Employees FIT Payable Employees SIT Payable Employees SUTA Payable Employees CIT Payable SIMPLE Deductions Payable Group Insurance Premiums Collected Health Insurance Premiums Collected Salaries Payable 12 Payroll Taxes FICA Taxes Payable - OASDI* FICA Taxes Payable - HI FUTA Taxes Payable SUTA Taxes Payable 14 Salaries Payable Cash FOR PERIOD ENDING January 8,20 - - \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ EMPLOYEE } & & & \multicolumn{3}{|c|}{ REGULAR EARNINGS } & \multicolumn{3}{|c|}{ OVERTIME EARNINGS } & \multirow[b]{2}{*}{\begin{tabular}{l} TOTAL \\ EARNINGS \end{tabular}} \\ \hline & & & & \begin{tabular}{c} RATE PER \\ HOUR \end{tabular} & AMOUNT & & \begin{tabular}{c} RATE PER \\ HOUR \end{tabular} & AMOUNT & \\ \hline Wilson, William A. & S & N/A & & & & & & & \\ \hline Utley, Harry T. & MFJ & N/A & & & & & & & \\ \hline Fay, Gretchen R. & MFJ & N/A & & & & & & & \\ \hline Hardy, Barbara T. & MFJ & N/A & & & & & & & \\ \hline Kipley, Carson C. & MFJ & N/A & & & & & & & \\ \hline Totals & & & & & & & & & \\ \hline \end{tabular} OLNEY COMPANY, INC. PAYROLL REGISTER \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ NET PAY } & \multicolumn{4}{|c|}{ TAXABLE EARNINGS } \\ \hline \begin{tabular}{c} CHECK \\ NO. \end{tabular} & AMOUNT & OASDI & HI & FUTA & SUTA \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} DATE DESCRIPTION DEBIT CREDIT 20-- Jan. 12 Wages and Salaries FICA Taxes Payable - OASDI FICA Taxes Payable - HI Employees FIT Payable Employees SIT Payable Employees SUTA Payable Employees CIT Payable SIMPLE Deductions Payable Group Insurance Premiums Collected Health Insurance Premiums Collected Salaries Payable 12 Payroll Taxes FICA Taxes Payable - OASDI* FICA Taxes Payable - HI FUTA Taxes Payable SUTA Taxes Payable 14 Salaries Payable Cash