The payroll records of Graham Computer Co. for the week ending October 7, the 40th week in the year, show the following:

Required:
1. Complete a work sheet with the following column headings: Employee 3 columns for Earnings for Week:
€¢ Use one for Regular Pay.
€¢ Use one for Overtime Premium Pay. (The company pays time-and-a-half for overtime for all employees below the supervisory level.)
€¢ Use one for Total for Week.
Total Earnings through 40th Week
FICA Taxable Earnings
FICA
Income Tax Withheld
Net Earnings
2. Prepare journal entries for the following:
a. Payroll for the 40th week.
b. Payment of payroll for the week.
c. Distribution of the payroll costs, assuming that overtime premium is charged to all jobs worked on during the period.
d. Employer€™s payroll tax liability.
3. The company carries a disability insurance policy for the employees at a cost of $15 per week for each employee. Journalize the employer€™s cost of insurance premiums for the week.

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Salary or Wage per 40-Hour Week $2,489 2,238 Income Gross Earnings Hours Worked Withheld Tax through 39th Week Employee Classification Allen Devine $123,560 President Vice President- Administration Supervisor- 40 $488 40 402 119,500 Fiorelli 700 40 180 27,300 Production Factory-Direct Factory-Direct O'Clock O'Reilly Pawlukiewicz Factory-Direct Surdick Trebbi Webb 500 400 400 380 300 300 150 160 110 120 80 60 48 19,820 17,200 16,600 15,200 7,800 6,600 46 Factory-Direct Factory-Indirect Factory-Indirect 42 42 42