Loose Leaf for Auditing & Assurance Services
Loose Leaf for Auditing & Assurance Services
7th Edition
ISBN: 9781260152166
Author: Timothy J Louwers, Allen Blay, David Sinason Associate Professor, Jerry R Strawser, Jay C. Thibodeau Associate Professor
Publisher: McGraw-Hill Education
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Chapter 6, Problem 13RC
To determine

Define lapping and procedures to detect lapping.

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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 shown. Employees are paid 12 times the regular rate for working over 40 hours a week. Name No. of Marital Allowances Status Total Hours Worked Mar. 16- Rate 22 Total Earnings Jan. 1- Mar. 15 Bacon, 4 M 46 $12.00 $5,480.00 Andrea Cole, 1 S 40 12.00 5,840.00 Andrew Hicks, 3 M 45 10.50 4,800.00 Melvin Leung, 1 S 37 11.00 5,113.00 Cara Melling, Melissa 2 M 40 13.00 4,742.00 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…
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