Low Country Goods has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30. these employees worked the hours shown below. Information about hourly rates, marital status, federal income tax withheld, and cumulative earnings prior to the current pay period also appears below. Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate. Employee Regular Hours Worked Hourly Rate Marital Status Federal Income Tax Withheld Cumulative Earnings Amora Brandon 47 $12.50 M 49.00 $ 17,620 Carlos Cortez 48 11.30 M 19.00 16,955 Jane Jennings Sarah Wise 40 51 11.00 M 23.00 10.50 S 57.00 16,060 14,640 Required: 1. Enter the basic payroll information for each employee in a payroll register. Record the employee's name, marital status, total and overtime hours, and regular hourly rate. Note: Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate. 2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register. 3. Compute the amount of social security tax to be withheld from each employee's earnings. Assume a 6.2 percent social security rate on the first $142.800 earned by the employee during the year. Enter the figures in the payroll register. 4. Compute the amount of Medicare tax to be withheld from each employee's earnings. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register. 5. Enter the amount of federal income tax to be withheld from each employee's total earnings. 6. Compute the net pay of each employce and enter the figures in the payroll register. 7. Prepare a general journal entry to record the payroll for the week ended June 30
Low Country Goods has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30. these employees worked the hours shown below. Information about hourly rates, marital status, federal income tax withheld, and cumulative earnings prior to the current pay period also appears below. Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate. Employee Regular Hours Worked Hourly Rate Marital Status Federal Income Tax Withheld Cumulative Earnings Amora Brandon 47 $12.50 M 49.00 $ 17,620 Carlos Cortez 48 11.30 M 19.00 16,955 Jane Jennings Sarah Wise 40 51 11.00 M 23.00 10.50 S 57.00 16,060 14,640 Required: 1. Enter the basic payroll information for each employee in a payroll register. Record the employee's name, marital status, total and overtime hours, and regular hourly rate. Note: Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate. 2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register. 3. Compute the amount of social security tax to be withheld from each employee's earnings. Assume a 6.2 percent social security rate on the first $142.800 earned by the employee during the year. Enter the figures in the payroll register. 4. Compute the amount of Medicare tax to be withheld from each employee's earnings. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register. 5. Enter the amount of federal income tax to be withheld from each employee's total earnings. 6. Compute the net pay of each employce and enter the figures in the payroll register. 7. Prepare a general journal entry to record the payroll for the week ended June 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Low Country Goods has four employees and pays them on an hourly basis. During the week beginning June 24 and ending June 30.
these employees worked the hours shown below. Information about hourly rates, marital status, federal income tax withheld, and
cumulative earnings prior to the current pay period also appears below. Consider any hours worked beyond 40 in the week as
overtime hours and overtime pay at one and one-half times their regular hourly rate
Employee
Regular Hours
Worked
Hourly Rate
Marital
Status
Federal
Income Tax
Withheld
Cumulative
Earnings
Amora Brandon
47
$12.50
M
49.00
$ 17,620
Carlos Cortez
48
11.30
M
19.00
16,955
Jane Jennings
40
11.00
M
23.00
Sarah Wise
51
10.50
S
57.00
16,060
14,640
Required:
1. Enter the basic payroll information for each employee in a payroll register. Record the employee's name, marital status, total and
overtime hours, and regular hourly rate. Note: Consider any hours worked beyond 40 in the week as overtime hours and
overtime pay at one and one-half times their regular hourly rate.
2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register.
3. Compute the amount of social security tax to be withheld from each employee's earnings. Assume a 6.2 percent social security
rate on the first $142.800 earned by the employee during the year. Enter the figures in the payroll register.
4. Compute the amount of Medicare tax to be withheld from each employee's earnings. Assume a 1.45 percent Medicare tax rate
on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register.
5. Enter the amount of federal income tax to be withheld from each employee's total earnings.
6. Compute the net pay of each employce and enter the figures in the payroll register.
7. Prepare a general journal entry to record the payroll for the week ended June 30.
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