The payroll records of DC Corporation for the week ending October 7, the fortieth week in the year, show the following:

EmployeeClassificationSalary/Wage per 40-hrHrs Income Tax W/Held Gross

Earnings

Through

39th week

Bush President $2,489 40 488 $109,560

Clinton, H. VP-Administration 2,238 40 402 99,500

Cater Supervisor-Production 700 40 108 27,300

Cheney Direct 500 48150 19,820

Clinton, W.Direct 400 46160 17,200

Gore Direct 400 44110 16,600

Lieberman Indirect 380 42 120 15,200

Nader Indirect 300 42 80 7,800

Kerry Indirect 300 42 60 6,600

1.Complete a work sheet with the following column headings:

Employee

3-columns for Earnings for week:

Use one for Regular Pay

Use one for Overtime Premium Pay (The company pays time-and-a-half for overtime for all employees

below the supervisory level.)

Use one for Total for Week

Total Earnings through Fortieth Week

FICA Taxable Earnings

FICA

Income Tax Withheld

Net Earnings

2.Prepare journal entries for the following:

a. Recording the payroll.

b. Paying the payroll.

c. Distributing the payroll, assuming that overtime premium will be charged to all jobs worked on during the period.

d. Employer's payroll taxes.

3. The company carries a disability insurance policy for the employees at a cost of $10 per week for each employee. Journalize the employer's cost of insurance premiums for the week.