Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary’s Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal. Mary’s Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20—, are given. Employees are paid 1½ times the regular rate for working over 40 hours a week. Name No. of Allowances Marital Status Total Hours Worked Mar. 16–22 Rate Total Earnings Jan. 1–Mar. 15 Bacon, Andrea 4 M 44 $14.00 $6,300.00 Cole, Andrew 1 S 40 15.00 6,150.00 Hicks, Melvin 3 M 44 13.50 5,805.00 Leung, Cara 1 S 36 14.00 5,600.00 Melling, Melissa 2 M 40 14.50 5,945.00 Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agency’s credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan. Mary’s Luxury Travel’s payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423. Required: 1. Prepare a payroll register for Mary’s Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns. If required, round your answers to the nearest cent. Payroll Register for Period Ended March 22 20-- Earnings Taxable Earnings Deductions Name No. of Allow. Marit. Status Regular Overtime Total Cumulative Total Unemploy. Comp. Social Security Federal Income Tax Social Security Tax Medicare Tax City Tax Health Insurance Other Total Net Pay Ck. No. Bacon, Andrea 4 M Cole, Andrew 1 S Hicks, Melvin 3 M Leung, Cara 1 S Melling, Melissa 2 M fill in the blank 54e539fbc045044_80 fill in the blank 54e539fbc045044_81 fill in the blank 54e539fbc045044_82 2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. Page: 1 DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20-- Mar. 24 1 2 2 3 3 4 4 5 5 6 6 7 7 8

Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary’s Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal. Mary’s Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20—, are given. Employees are paid 1½ times the regular rate for working over 40 hours a week. Name No. of Allowances Marital Status Total Hours Worked Mar. 16–22 Rate Total Earnings Jan. 1–Mar. 15 Bacon, Andrea 4 M 44 $14.00 $6,300.00 Cole, Andrew 1 S 40 15.00 6,150.00 Hicks, Melvin 3 M 44 13.50 5,805.00 Leung, Cara 1 S 36 14.00 5,600.00 Melling, Melissa 2 M 40 14.50 5,945.00 Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agency’s credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan. Mary’s Luxury Travel’s payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423. Required: 1. Prepare a payroll register for Mary’s Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns. If required, round your answers to the nearest cent. Payroll Register for Period Ended March 22 20-- Earnings Taxable Earnings Deductions Name No. of Allow. Marit. Status Regular Overtime Total Cumulative Total Unemploy. Comp. Social Security Federal Income Tax Social Security Tax Medicare Tax City Tax Health Insurance Other Total Net Pay Ck. No. Bacon, Andrea 4 M Cole, Andrew 1 S Hicks, Melvin 3 M Leung, Cara 1 S Melling, Melissa 2 M fill in the blank 54e539fbc045044_80 fill in the blank 54e539fbc045044_81 fill in the blank 54e539fbc045044_82 2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll. Page: 1 DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20-- Mar. 24 1 2 2 3 3 4 4 5 5 6 6 7 7 8

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter4: Income Tax Withholding

Section: Chapter Questions

Problem 5PB

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Payroll Register and Payroll Journal Entry

Mary Losch operates a travel agency called Mary’s Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal.

Mary’s Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20—, are given. Employees are paid 1½ times the regular rate for working over 40 hours a week.

Name	No. of Allowances	Marital Status	Total Hours Worked Mar. 16–22	Rate	Total Earnings Jan. 1–Mar. 15
Bacon, Andrea	4	M	44	$14.00	$6,300.00
Cole, Andrew	1	S	40	15.00	6,150.00
Hicks, Melvin	3	M	44	13.50	5,805.00
Leung, Cara	1	S	36	14.00	5,600.00
Melling, Melissa	2	M	40	14.50	5,945.00

Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health insurance. Bacon and Leung have $20 withheld to be invested in the travel agency’s credit union. Cole has $38.75 withheld and Hicks has $18.75 withheld under a savings bond purchase plan.

Mary’s Luxury Travel’s payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423.

Required:

1. Prepare a payroll register for Mary’s Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns.

If required, round your answers to the nearest cent.

			Payroll Register for Period Ended	March 22	20--
			Earnings	Taxable Earnings	Deductions
Name	No. of Allow.	Marit. Status	Regular	Overtime	Total	Cumulative Total	Unemploy. Comp.	Social Security	Federal Income Tax	Social Security Tax	Medicare Tax	City Tax	Health Insurance	Other	Total	Net Pay	Ck. No.
Bacon, Andrea	4	M
Cole, Andrew	1	S
Hicks, Melvin	3	M
Leung, Cara	1	S
Melling, Melissa	2	M
								fill in the blank 54e539fbc045044_80	fill in the blank 54e539fbc045044_81	fill in the blank 54e539fbc045044_82

2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll.

Page: 1

	DATE
1	20-- Mar. 24	1
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