Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Assume that the Social Security tax is 6.2 percent and Medicare tax is 1.45 percent. All earnings are subject to Social Security and Medicare taxes. Brown Ringness Total Regular earnings $ 3,500.00 $ 2,618.00 $ 6,118.00 Overtime earnings 146.00 120.00 266.00 Total earnings $ 3,646.00 $ 2,738.00 $ 6,384.00 Federal income tax withheld $ 312.08 $ 175.89 $ 487.97 State income tax withheld 62.42 35.18 97.60 Social Security tax withheld 226.05 169.76 395.81 Medicare tax withheld 52.87 39.70 92.57 Charity withheld 35.00 97.00 132.00 Total deductions $ 688.42 $ 517.53 $ 1,205.95 Net pay $ 2,957.58 $ 2,220.47 $ 5,178.05 Assume that the employees are paid from the company's regular bank account (check numbers 981 and 982). Prepare the entry to record and pay the payroll in general journal form, dated September 30. If required, round amounts to the nearest cent. If an amount does not require an entry, leave it blank.
Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Assume that the Social Security tax is 6.2 percent and Medicare tax is 1.45 percent. All earnings are subject to Social Security and Medicare taxes. Brown Ringness Total Regular earnings $ 3,500.00 $ 2,618.00 $ 6,118.00 Overtime earnings 146.00 120.00 266.00 Total earnings $ 3,646.00 $ 2,738.00 $ 6,384.00 Federal income tax withheld $ 312.08 $ 175.89 $ 487.97 State income tax withheld 62.42 35.18 97.60 Social Security tax withheld 226.05 169.76 395.81 Medicare tax withheld 52.87 39.70 92.57 Charity withheld 35.00 97.00 132.00 Total deductions $ 688.42 $ 517.53 $ 1,205.95 Net pay $ 2,957.58 $ 2,220.47 $ 5,178.05 Assume that the employees are paid from the company's regular bank account (check numbers 981 and 982). Prepare the entry to record and pay the payroll in general journal form, dated September 30. If required, round amounts to the nearest cent. If an amount does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Assume that the Social Security tax is 6.2 percent and Medicare tax is 1.45 percent. All earnings are subject to Social Security and Medicare taxes.
| Brown | Ringness | Total | |
| Regular earnings | $ 3,500.00 | $ 2,618.00 | $ 6,118.00 |
| Overtime earnings | 146.00 | 120.00 | 266.00 |
| Total earnings | $ 3,646.00 | $ 2,738.00 | $ 6,384.00 |
| Federal income tax withheld | $ 312.08 | $ 175.89 | $ 487.97 |
| State income tax withheld | 62.42 | 35.18 | 97.60 |
| Social Security tax withheld | 226.05 | 169.76 | 395.81 |
| Medicare tax withheld | 52.87 | 39.70 | 92.57 |
| Charity withheld | 35.00 | 97.00 | 132.00 |
| Total deductions | $ 688.42 | $ 517.53 | $ 1,205.95 |
| Net pay | $ 2,957.58 | $ 2,220.47 | $ 5,178.05 |
Assume that the employees are paid from the company's regular bank account (check numbers 981 and 982).
Prepare the entry to record and pay the payroll in general journal form, dated September 30. If required, round amounts to the nearest cent. If an amount does not require an entry, leave it blank.
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