Summary Payroll Data

In the following summary of data for a payroll period, some amounts have been intentionally omitted:

Earnings: 1. At regular rate? 2. At overtime rate$80,000 3. Total earnings?Deductions: 4. Social security tax(32,400) 5. Medicare tax(8,100) 6. Income tax withheld(135,000) 7. Medical insurance(18,900) 8. Union dues? 9. Total deductions(201,150) 10. Net amount paid$338,850Accounts debited: 11. Factory Wages285,000 12. Sales Salaries? 13. Office Salaries120,000

a. Calculate the amounts omitted in lines (1), (3), (8), and (12). Assume that the social security tax rate was 6.0% and the Medicare tax rate was 1.5%.

(1)$fill in the blank 5131050ab058076_1(3)$fill in the blank 5131050ab058076_2(8)$fill in the blank 5131050ab058076_3(12)$fill in the blank 5131050ab058076_4

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Consider how deductions such as social security and Medicare taxes are calculated. How can these calculations help you solve for some of the missing amounts?

b. Journalize the entry to record the payroll accrual. If an amount box does not require an entry, leave it blank.

fill in the blank acedf507805101e_2fill in the blank acedf507805101e_3 fill in the blank acedf507805101e_5fill in the blank acedf507805101e_6 fill in the blank acedf507805101e_8fill in the blank acedf507805101e_9 fill in the blank acedf507805101e_11fill in the blank acedf507805101e_12 fill in the blank acedf507805101e_14fill in the blank acedf507805101e_15 fill in the blank acedf507805101e_17fill in the blank acedf507805101e_18 fill in the blank acedf507805101e_20fill in the blank acedf507805101e_21 fill in the blank acedf507805101e_23fill in the blank acedf507805101e_24 fill in the blank acedf507805101e_26fill in the blank acedf507805101e_27

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Gross pay is the amount that employees have earned before taxes and deductions. A portion of employees' earnings are owed for such items as state and federal taxes. Net pay is also known as take home pay. Expenses can be classified on a multi-step income statement as selling expenses or general and administrative expenses and therefore payment of salaries need to be classified accordingly.

c. Journalize the entry to record the payment of the payroll. If an amount box does not require an entry, leave it blank.

fill in the blank 1c9fc5010064fb7_2fill in the blank 1c9fc5010064fb7_3 fill in the blank 1c9fc5010064fb7_5