Homework SourseThe following data for Throwback Industries Inc relate to th
The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 2016: Employee Hours Worked Hourly Rate Weekly Salary Federal Income Tax U.S. Savings Bonds Aaron 43 $70 $689.44 $105 Cobb 43 58 539.92 115 Clemente 45 64 668.44 125 DiMaggio 39 52 377.80 0 Griffey, Jr. 48 64 749.08 135 Mantle $1,700 317.45 125 Robinson 38 53 387.32 135 Williams 2,100 426.24 130 Vaughn 48 64 770.08 80 Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0%, and Medicare tax is 1.5% of each employee’s annual earnings. The next payroll check to be used is No. 901. Required: 1. Prepare a payroll register for Throwback Industries Inc. for the week ended December 9, 2016. Assume the normal working hours in a week are 40 hours. Enter amounts as positive numbers and round your intermediate calculations and final answers to the nearest whole cent (two decimal places). 2. Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles.
Solution
Payroll for Week Ending December 7, 2014
Earnings
Deductions
Paid
Employee
Hours Worked
Hourly Rate
Regular (40 * Hourly Rate)
Overtime
Total
Social Security Tax @6% up to $118,500
Medicare Tax @ 1.5%
Federal Income Tax
U.S. Savings Bonds
Total
Net Pay
Aaron
43
70
2,800.00
315.00
3,115.00
186.90
46.73
689.44
135.00
1,058.07
2,056.94
Cobb
43
58
2,320.00
261.00
2,581.00
154.86
38.72
539.92
145.00
878.50
1,702.51
Clemente
45
64
2,560.00
480.00
3,040.00
182.40
45.60
668.44
155.00
1,051.44
1,988.56
DiMaggio
39
52
2,080.00
-
2,080.00
124.80
31.20
377.80
-
533.80
1,546.20
Griffey, Jr
48
64
2,560.00
768.00
3,328.00
199.68
49.92
749.08
165.00
1,163.68
2,164.32
Mantle
0
0
1,700.00
-
1,700.00
102.00
25.50
317.45
155.00
599.95
1,100.05
Robinson
38
53
2,014.00
-
2,014.00
120.84
30.21
387.32
165.00
703.37
1,310.63
Williams
0
0
2,100.00
-
2,100.00
126.00
31.50
426.24
160.00
743.74
1,356.26
Vaughn
48
64
3,072.00
768.00
3,840.00
230.40
57.60
770.08
50.00
1,108.08
2,731.92
23,798.00
1,240.98
1,427.88
4,925.77
1,130.00
7,840.62
15,957.38
Salaries Expense Dr $23,798
Employees Income Tax Payable Cr $4,925.77
Social Security Tax Payable Cr $1,427.88
Medicare Tax Payable Cr $356.97
Bond Deductions Payable Cr $1,130
Salaries Payable Cr $15,957.38
| Payroll for Week Ending December 7, 2014 | ||||||||||||
| Earnings | Deductions | Paid | ||||||||||
| Employee | Hours Worked | Hourly Rate | Regular (40 * Hourly Rate) | Overtime | Total | Social Security Tax @6% up to $118,500 | Medicare Tax @ 1.5% | Federal Income Tax | U.S. Savings Bonds | Total | Net Pay | |
| Aaron | 43 | 70 | 2,800.00 | 315.00 | 3,115.00 | 186.90 | 46.73 | 689.44 | 135.00 | 1,058.07 | 2,056.94 | |
| Cobb | 43 | 58 | 2,320.00 | 261.00 | 2,581.00 | 154.86 | 38.72 | 539.92 | 145.00 | 878.50 | 1,702.51 | |
| Clemente | 45 | 64 | 2,560.00 | 480.00 | 3,040.00 | 182.40 | 45.60 | 668.44 | 155.00 | 1,051.44 | 1,988.56 | |
| DiMaggio | 39 | 52 | 2,080.00 | - | 2,080.00 | 124.80 | 31.20 | 377.80 | - | 533.80 | 1,546.20 | |
| Griffey, Jr | 48 | 64 | 2,560.00 | 768.00 | 3,328.00 | 199.68 | 49.92 | 749.08 | 165.00 | 1,163.68 | 2,164.32 | |
| Mantle | 0 | 0 | 1,700.00 | - | 1,700.00 | 102.00 | 25.50 | 317.45 | 155.00 | 599.95 | 1,100.05 | |
| Robinson | 38 | 53 | 2,014.00 | - | 2,014.00 | 120.84 | 30.21 | 387.32 | 165.00 | 703.37 | 1,310.63 | |
| Williams | 0 | 0 | 2,100.00 | - | 2,100.00 | 126.00 | 31.50 | 426.24 | 160.00 | 743.74 | 1,356.26 | |
| Vaughn | 48 | 64 | 3,072.00 | 768.00 | 3,840.00 | 230.40 | 57.60 | 770.08 | 50.00 | 1,108.08 | 2,731.92 | |
| 23,798.00 | 1,240.98 | 1,427.88 | 4,925.77 | 1,130.00 | 7,840.62 | 15,957.38 |
