Youve just started your first accounting job, as the accounts payable and payroll clerk for Copperfield and Company, a provider of delicate wine glasses to restaurants. Your predecessor left his job suddenly, and was not able to complete all his tasks before leaving. You need to get up to speed and complete the unfinished tasks as soon as possible.

Your tasks on your first day are the following:

1. Review the payroll register to determine if there are any errors or omissions.

2. Calculate the relevant amounts for the companys note payable and determine whether your predecessors journal entries are correct.

3. Make a recommendation as to whether the company should journalize any warranty expense for the month.

You decide to get started - the sooner the better!

Since this is your first day, youre relieved to find that the company has only three employees in the main office that have not yet been reviewed. The partial payroll register for these employees is below. Some data is missing, and other data may be in error. Each of these employees earns $20.00 per hour, and the company follows the Fair Labor Standards Act in paying overtime to its employees. You have been assured that the Federal Income Tax withholding and check numbers are correct, so you do not need to check those figures.

Note 1: For 2015, the social security tax rate was 6.2% and the medicare tax rate was 1.45%. However, for text examples and problems, including this one, use rates of 6% for social security tax and 1.5% for medicare tax.

Note 2: Earnings subject to the social security tax are limited to an annual threshold amount, but for text examples and problems, including this one, assume all accumulated annual earnings are below this threshold and subject to the tax.

Review the payroll register below, which was prepared by your predecessor, and then scroll down to complete a corrected payroll register. If there is no amount or an amount is zero, enter 0. Round your interim computations to the nearest cent, if required.

		Earnings			Deductions Withheld				Paid		Account Debited
	Total				Social	Medicare	Federal				Wages
Employee Name	Hours	Regular	Overtime	Total	Security Tax	Tax	Income Tax	Total	Net Pay	Check No.	Expense
Dartle, Rosa	40	800.00		800.00	12.00	48.00	52.25	112.25	687.75	2355	687.75
Traddles, Thomas	44	880.00		880.00	13.20	52.80	63.75	129.75	750.25	2557	750.25
Wickfield, Agnes	40	800.00		800.00	12.00	48.00	32.55	92.55	707.45	2892	707.45
Total		2,480.00	$0.00	2,480.00	37.20	148.80	148.55	334.55	2,145.45		2,145.45

		Earnings			Deductions Withheld				Paid		Account Debited
	Total				Social	Medicare	Federal				Wages
Employee Name	Hours	Regular	Overtime	Total	Security Tax	Tax	Income Tax	Total	Net Pay	Check No.	Expense
Dartle, Rosa	40						52.25			2355
Traddles, Thomas	44						63.75			2557
Wickfield, Agnes	40						32.55			2892
Total							148.55

Copperfield and Company issued a 90-day, 6.00% note for $190,000 to a creditor on account. The previous clerk entered the following journal entries to record the note on July 10, and the payment of the note at maturity.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	Jul. 10	Accounts Payable		190,000.00
2		Notes Payable			190,000.00
3		Notes Payable		201,400.00
4		Accounts Payable			190,000.00
5		Interest Expense			11,400.00

You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (including interest) did not have a date and was not correct.

Show the journal entry for payment of the note at maturity as it should have been entered. Dont forget to include the date. Assume a 360-day year.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3