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?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Marital
Federal
Income Taxi
Hourly Rate Status
Withheld
Cumulative
Earnings
Amora Brandon:
48
$ 12.60
M
52.00
$ 17,630
Carlos Cortez
49
11.40
21.00
16,965
Jane Jennings
Sarah Wise
Required:
40
51
11.10
10.60
23.00
57.00
16,070
14,650
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?
Complete this question by entering your answers in the tabs below.
Payroll
Register
General
Journal
Analyze
Compute the regular, overtime, gross earnings, social security tax and Medicare 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. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Determine the amount of federal income tax to be withheld from each
employee's total earnings. (Use the table shown in Figure 10.1A & Figure 10.1B whichever is applicable). Finally compute the net pay of each employee.
Note: Round your intermediate calculations and final answers to 2 decimal places.
Payroll register
Week beginning: June 24, 20X1
And ending: June 30, 20X1
Paid: July 3, 20X1
Employee
Regular time
earnings
Earnings
Overtime
earnings
Taxable wages
Deductions
Distribution
Gross amount
Cumulative
earnings
Social
security
Medicare
Social
security
Medicare
Income tax
Net amount
Amora Brandon
Carlos Cortez
Jane Jennings
Sarah Wise
Payroll Register
General Journal >
Wages
expense
Show lessA
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 Marital Federal Income Taxi Hourly Rate Status Withheld Cumulative Earnings Amora Brandon: 48 $ 12.60 M 52.00 $ 17,630 Carlos Cortez 49 11.40 21.00 16,965 Jane Jennings Sarah Wise Required: 40 51 11.10 10.60 23.00 57.00 16,070 14,650 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? Complete this question by entering your answers in the tabs below. Payroll Register General Journal Analyze Compute the regular, overtime, gross earnings, social security tax and Medicare 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. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Determine the amount of federal income tax to be withheld from each employee's total earnings. (Use the table shown in Figure 10.1A & Figure 10.1B whichever is applicable). Finally compute the net pay of each employee. Note: Round your intermediate calculations and final answers to 2 decimal places. Payroll register Week beginning: June 24, 20X1 And ending: June 30, 20X1 Paid: July 3, 20X1 Employee Regular time earnings Earnings Overtime earnings Taxable wages Deductions Distribution Gross amount Cumulative earnings Social security Medicare Social security Medicare Income tax Net amount Amora Brandon Carlos Cortez Jane Jennings Sarah Wise Payroll Register General Journal > Wages expense Show lessA
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