Bags, Inc., a manufacturer of suitcases, has 10 employees; five are paid on a salary basis, and five are hourly employees. The employees and their compensation are as follows:

Annual Salary

Ken Scott (president) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $91,500

Tatia Furgins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,000

Jennifer Poulns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,750

Robyn Meek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,800

Kyle Roberts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,900

Rate per Hour

Richard Dean (50 hours per week) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14.00

Denise Ray (40 hours per week) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.50

Dale Frank (40 hours per week) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.75

Bryan Leslie (30 hours per week) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.50

Albert Lamb (20 hours per week) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.65

The salaried employees are covered by a comprehensive medical and dental plan. The cost of the plan is $45 per employee and is deducted from each paycheck. The hourly employees are covered only by a medical plan. The cost is calculated at 3.5% of gross pay and is deducted from each check. The FICA rate is 7.65%, and FUTA is 6.2%, with the maximum credit for state unemployment allowed. The state unemployment tax is 5.4%. No employee has reached the FICA, FUTA, or SUTA salary limits. In addition, each of the hourly employees, except Albert, belongs to the Suitcase Workers of America Union. Union dues are $5.65 per month and are deducted and paid on behalf of the hourly employees. The income tax withholding rate is 28% for employees with annual incomes above $29,500 and 15% for employees with annual incomes of $29,500 or less. Hourly employees are paid weekly on Friday, January 6, 13, 20, and 27. Salaried employees are paid twice a month, on January 13 and 27. Assume that payroll taxes and all employee withholdings and deductions are paid on the 15th and the last day of each month.

Instructions:

Make all entries related to Bags, Inc.’s, payroll for January 6, January 13, and January 15.