Summary Payroll Data In the following summary of data for a

Summary Payroll Data

In the following summary of data for a payroll period, some amounts have been intentionally omitted:

a. Calculate the amounts omitted in lines (1), (3), (8), and (12).

b. Journalize the entry to record the payroll accrual. If an amount box does not require an entry, leave it blank.

c. Journalize the entry to record the payment of the payroll.

Earnings:
	1. At regular rate	?
	2. At overtime rate	$65,400
	3. Total earnings	?
Deductions:
	4. Social security tax	26,220
	5. Medicare tax	6,555
	6. Income tax withheld	111,200
	7. Medical insurance	15,000
	8. Union dues	?
	9. Total deductions	162,000
	10. Net amount paid	275,000
Accounts debited:
	11. Factory Wages	231,600
	12. Sales Salaries	?
	13. Office Salaries	87,400

Solution

(a) Earnings: 1. At regular rate $371,600 (3) - (2) 2. At overtime rate $65,400 3. Total earnings 437,000 (9) + (10) Deductions: 4. Social security tax 26,220 5. Medicare tax 6,555 6. Income tax withheld 111,200 7. Medical insurance 15,000 8. Union dues 3,025 (9)-(4)-(5)-(6)-(7) 9. Total deductions 162,000 10. Net amount paid 275,000 Accounts debited: 11. Factory Wages 231,600 12. Sales Salaries 118,000 (3) - (11) - (12) 13. Office Salaries 87,400 (1) $                                       371,600 (3) $                                       437,000 (8) $                                           3,025 (12) $                                       118,000 (b) Sales Salaries expense $ 118,000 Factory Wage expense $ 231,600 Office Salaries expense $     87,400 Employees Income Tax payable $                111,200 Social Security Tax Payable $                  26,220 Medicare tax payable $                     6,555 Medical insurance payable $                  15,000 Union dues payable $                     3,025 Salaries Payable $                275,000 (c ) salaries payable $ 275,000 Cash $                275,000