Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary's Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal. Mary's Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20, are given. Employees are paid 1/2 times the regular rate for working over 40 hours a week. No. of Marital Total Hours Allowances Status Worked Mar. 16-22 Total Earnings Jan. 1-Mar. 15 Name Rate Bacon, Andrea 4 M 44 $14.00 $6,300.00 1 S 40 15.00 6,150.00 3 M 44 13.50 5,805.00 Cole, Andrew Hicks, Melvin Leung, Cara Melling, Melissa 1 S 36 14.00 5,600.00 5,945.00 2 M 40 14.50 Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agency's credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan. Mary's Luxury Travel's payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423. Required: 1. Prepare a payroll register for Mary's Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns. If required, round your answers to the nearest cent. Payroll Register for Period Ended Earnings Taxable Earnings No. of Marit. Allow. Status Cumulative Total Unemploy. Comp. Social Security Federal Income Social Security Tax Tax Medicare Name Regular Overtime Total Bacon, Andrea 4 M Cole, Andrew 1 S Hicks, Melvin 3 M Leung, Cara 1 S Melling, Melissa 2 M er for Period Ended March 22 20-- ngs Deductions al Security Federal Income Social Security Tax Medicare Tax Health Insurance Other Net Pay Ck. No. Tax City Tax Total payroll. 2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Wages and Salaries Expense Mar. 24 Health Insurance Premiums Expense 1 1 2 2 3 Credit Union Expense 3 4 4 5 5 6 6 7 7 8 8 9 9 10 Payroll for week ended March 22 10 Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary's Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal. Mary's Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20, are given. Employees are paid 1/2 times the regular rate for working over 40 hours a week. No. of Marital Total Hours Allowances Status Worked Mar. 16-22 Total Earnings Jan. 1-Mar. 15 Name Rate Bacon, Andrea 4 M 44 $14.00 $6,300.00 1 S 40 15.00 6,150.00 3 M 44 13.50 5,805.00 Cole, Andrew Hicks, Melvin Leung, Cara Melling, Melissa 1 S 36 14.00 5,600.00 5,945.00 2 M 40 14.50 Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agency's credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan. Mary's Luxury Travel's payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423. Required: 1. Prepare a payroll register for Mary's Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns. If required, round your answers to the nearest cent. Payroll Register for Period Ended Earnings Taxable Earnings No. of Marit. Allow. Status Cumulative Total Unemploy. Comp. Social Security Federal Income Social Security Tax Tax Medicare Name Regular Overtime Total Bacon, Andrea 4 M Cole, Andrew 1 S Hicks, Melvin 3 M Leung, Cara 1 S Melling, Melissa 2 M er for Period Ended March 22 20-- ngs Deductions al Security Federal Income Social Security Tax Medicare Tax Health Insurance Other Net Pay Ck. No. Tax City Tax Total payroll. 2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Wages and Salaries Expense Mar. 24 Health Insurance Premiums Expense 1 1 2 2 3 Credit Union Expense 3 4 4 5 5 6 6 7 7 8 8 9 9 10 Payroll for week ended March 22 10
