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 Regular Hours Marital Federal Income Tax Employee Worked Hourly Rate Status Withheld Cumulative Earnings Amora Brandon 48 $12.60 M 52.00 $ 17,630 Carlos Cortez 49 11.48 M 21.00 16,965 Jane Jennings Sarah Wise 40 51 11.10 E 10.60 23.00 57.00 16,070 14,650 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 employee and enter the figures in the payroll register. 7. Prepare a general journal entry to record the payroll for the week ended June 30 8. Record the general journal entry to summarize payment of the payroll on July 3 Analyze: What are Amora Brandon's cumulative earnings on June 30, 20X1?
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 Regular Hours Marital Federal Income Tax Employee Worked Hourly Rate Status Withheld Cumulative Earnings Amora Brandon 48 $12.60 M 52.00 $ 17,630 Carlos Cortez 49 11.48 M 21.00 16,965 Jane Jennings Sarah Wise 40 51 11.10 E 10.60 23.00 57.00 16,070 14,650 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 employee and enter the figures in the payroll register. 7. Prepare a general journal entry to record the payroll for the week ended June 30 8. Record the general journal entry to summarize payment of the payroll on July 3 Analyze: What are Amora Brandon's cumulative earnings on June 30, 20X1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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