156 Principles of Cost Accounting E3-5 Journal entries for payroll A partial summary of the payroll data for Burrington Manufactur- ing Company for each week of June is as follows: LO2 LO3 June 7 June 14 June 21 June 28 Gross earnings $ 36,500 $ 34,200 $ 37,300 $ 38,400 Deductions: FICA tax, 8% $? $? $? $? Tax-sheltered annuity 1,825 1,780 1,855 1,870 Income tax 4,215 4,120 4,320 4,410 Health insurance 600 600 600 600 Total deductions $? $? $? $? Net earnings $? $? $? $? a. Compute the missing amounts in the summary, assuming that no employees have reached the $100,000 FICA maximum. b. For each payroll period, prepare journal entries to (1) record
156 Principles of Cost Accounting E3-5 Journal entries for payroll A partial summary of the payroll data for Burrington Manufactur- ing Company for each week of June is as follows: LO2 LO3 June 7 June 14 June 21 June 28 Gross earnings $ 36,500 $ 34,200 $ 37,300 $ 38,400 Deductions: FICA tax, 8% $? $? $? $? Tax-sheltered annuity 1,825 1,780 1,855 1,870 Income tax 4,215 4,120 4,320 4,410 Health insurance 600 600 600 600 Total deductions $? $? $? $? Net earnings $? $? $? $? a. Compute the missing amounts in the summary, assuming that no employees have reached the $100,000 FICA maximum. b. For each payroll period, prepare journal entries to (1) record
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cost accounting Pag. 156-E3-5
Transcribed Image Text:156
Principles of Cost Accounting
Journal entries for payroll
A partial summary of the payroll data for Burrington Manufactur-
ing Company for each week of June is as follows:
ЕЗ-5
LO2
LO3
June 7
June 14
June 21
June 28
Gross earnings .
$ 36,500
$ 34,200
$ 37,300
$ 38,400
Deductions:
FICA tax, 8%
$?
$?
$?
$?
Tax-sheltered annuity.
1,825
1,780
1,855
1,870
Income tax
4,215
4,120
4,320
4,410
Health insurance
600
600
600
600
Total deductions
$?
$?
$?
$?
Net earnings
$?
$?
$?
$?
a. Compute the missing amounts in the summary, assuming that
no employees have reached the $100,000 FICA maximum.
b. For each payroll period, prepare journal entries to (1) record
the payroll and (2) record the payments to employees.
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