Using the earnings data developed in E3-1 and assuming that this was the first week of employment for R. Herbert with Crestview Manufacturing Co., prepare the journal entries for the following: b. Payment of the payroll. State unemployment-4% of the firstcalendar year.Federal unemployment-1% of the first $8,000 of earnings per employee percalendar year.Federal income tax withholding-10% of each employee's gross earnings,unless otherwise stated.Computing payroll earningsR. Herbert of Crestview Manufacturing Co. is paid at the rate of $20an hour for an eight-hour day, with time-and-a-half for overtimeand double-time for Sundays and holidays. Regular employmentis on the basis of 40 hours a week, five days a week. At the endof a week, the labor time record shows the following:E3-1Job or Indirect LaborSu.M.Tu.Th.Sa.Total0075.35.024.0009335.6.522.5Machine repair46.510.5Total48.8811.5116.557.0Because jobs are randomly scheduled for the overtime period,any overtime premium is charged to Factory Overhead.a. Compute Herbert's total earnings for the week.b. Present the journal entry to distribute Herbert's total earnings.(Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8and E3-9 are for the purpose of illustrating the principle involved.Normally, the entries would be made for the total factory payrollplus the administrative and sales payroll.)Recording payrollUsing the earnings data developed in E3-1 and assuming that thiswas the first week of employment for R. Herbert with CrestviewManufacturing Co., prepare the journal entries for the following:a. The week's payroll.b. Payment of the payroll.E3-2Modified wage planRandy Wetzel earns $25 per hour for up to 400 units of produc-tion per day. If he produces more than 400 units per day, hewill receive an additional piece rate of $.50 per unit. AssumeE3-3

Payroll accounting is basically the calculation, recording, and examination of employees’…

Using the earnings data developed in E3-1 and assuming that this was the first week of employment for R. Herbert with Crestview Manufacturing Co., prepare the journal entries for the following: b. Payment of the payroll.

Using the earnings data developed in E3-1 and assuming that this was the first week of employment for R. Herbert with Crestview Manufacturing Co., prepare the journal entries for the following: b. Payment of the payroll.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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