Highridge Homes

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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Highridge Homes has the following payroll information for the week ended February 21:

Name Earnings at End of Previous Week Daily Time Pay Rate Federal Income Tax
S M T W T F S
Arthur, P. 7,800.00     8 8 8 8 8     45.00 226.78
Bills, D. 2,060.00         8 8 8 8 8 12.50 26.00
Carney, W. 2,085.00     8 8 8     8 8 12.95 27.00
Dorn, J. 748.00           8 8     22.00 11.00
Edgar, L. 2,687.00     8 8 8     8 8 15.00 37.00
Fitzwilson, G. 4,150.00     8 8   8 8 8 8 23.00 125.00

Taxable earnings for Social Security are based on the first $118,500. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000. Employees are paid time-and-a-half for work in excess of 40 hours per week.

Prepare a general journal entry to record the payroll. The firm's general ledger contains a Wages Expense account and a Wages Payable account. Then assuming that the firm has transferred funds from its regular bank account to its special payroll bank account and that this entry has been made, prepare a general journal entry to record the payment of wages. When necessary, round your intermediate calculations and the final answers to the nearest cent. If an amount box does not require an entry, leave it blank.


GENERAL JOURNAL PAGE      
DATE DESCRIPTION   POST. REF. DEBIT CREDIT
20--    
Feb. 21
 
    fill in the blank ee29ee01603501e_2 fill in the blank ee29ee01603501e_3
       
 
    fill in the blank ee29ee01603501e_5 fill in the blank ee29ee01603501e_6
       
 
    fill in the blank ee29ee01603501e_8 fill in the blank ee29ee01603501e_9
       
 
    fill in the blank ee29ee01603501e_11 fill in the blank ee29ee01603501e_12
       
 
    fill in the blank ee29ee01603501e_14 fill in the blank ee29ee01603501e_15
  Payroll register for week ended February 21.  
     
Feb. 21
 
    fill in the blank ee29ee01603501e_17  
       
 
      fill in the blank ee29ee01603501e_19
  Paid wages for week ended February 21.  
 

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