Assume that the social security tax rate is 6% and the Medicare tax rate is 1.5%. In the following summary of data for a payroll period, some amounts have been intentionally omitted:Earnings:At regular rate ?At overtime rate $80,000Total earnings ?Deductions:Social security tax $32,400Medicare tax $8,100Federal income tax withheld $135,000Medical insurance $18,900Union dues ?Total deductions $201,150Net amount paid $338,850Accounts debited:Factory Wages $285,000Sales Salaries ?Office Salaries $120,000Determine the amounts omitted in lines (1), (3), (8), and (12).Journalize the entry to record the payroll accrual.Journalize the entry to record the payment of the payroll.Total earnings should be $540,000

Payroll: The total payment that a company is required to pay to its employee for the services…

Answered: Determine the amounts omitted in lines…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume that the social security tax rate is 6% and the Medicare tax rate is 1.5%. In the following summary of data for a payroll period, some amounts have been intentionally omitted:

Earnings:

At regular rate ?
At overtime rate $80,000
Total earnings ?

Deductions:

Social security tax $32,400
Medicare tax $8,100
Federal income tax withheld $135,000
Medical insurance $18,900
Union dues ?
Total deductions $201,150
Net amount paid $338,850

Accounts debited:

Factory Wages $285,000
Sales Salaries ?
Office Salaries $120,000
Determine the amounts omitted in lines (1), (3), (8), and (12).
Journalize the entry to record the payroll accrual.
Journalize the entry to record the payment of the payroll.

Total earnings should be $540,000

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