Homework Help is Here – Start Your Trial Now!
Business
Accounting
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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

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 first calendar year. Federal unemployment-1% of the first $8,000 of earnings per employee per calendar year. Federal income tax withholding-10% of each employee's gross earnings, unless otherwise stated. Computing payroll earnings R. Herbert of Crestview Manufacturing Co. is paid at the rate of $20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: E3-1 Job or Indirect Labor Su. M. Tu. Th. Sa. Total 007 5. 3 5.0 24.0 009 3 3 5. 6.5 22.5 Machine repair 4 6.5 10.5 Total 4 8. 8 8 11.5 11 6.5 57.0 Because 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, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.) Recording 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: a. The week's payroll. b. Payment of the payroll. E3-2 Modified wage plan Randy Wetzel earns $25 per hour for up to 400 units of produc- tion per day. If he produces more than 400 units per day, he will receive an additional piece rate of $.50 per unit. Assume E3-3
Transcribed Image Text:State unemployment-4% of the first calendar year. Federal unemployment-1% of the first $8,000 of earnings per employee per calendar year. Federal income tax withholding-10% of each employee's gross earnings, unless otherwise stated. Computing payroll earnings R. Herbert of Crestview Manufacturing Co. is paid at the rate of $20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: E3-1 Job or Indirect Labor Su. M. Tu. Th. Sa. Total 007 5. 3 5.0 24.0 009 3 3 5. 6.5 22.5 Machine repair 4 6.5 10.5 Total 4 8. 8 8 11.5 11 6.5 57.0 Because 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, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.) Recording 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: a. The week's payroll. b. Payment of the payroll. E3-2 Modified wage plan Randy Wetzel earns $25 per hour for up to 400 units of produc- tion per day. If he produces more than 400 units per day, he will receive an additional piece rate of $.50 per unit. Assume E3-3
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Journal entries
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS