Payroll Register and Payroll Journal Entry

Mary Losch operates a travel agency called Marys 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.

Marys 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 1 times the regular rate for working over 40 hours a week.

Name	No. of Allowances	Marital Status	Total Hours Worked Mar. 1622	Rate	Total Earnings Jan. 1Mar. 15
Bacon, Andrea	4	M	45	$12.00	$5,500.00
Cole, Andrew	1	S	40	12.00	5,840.00
Hicks, Melvin	3	M	44	10.50	4,860.00
Leung, Cara	1	S	35	11.00	5,117.50
Melling, Melissa	2	M	40	13.00	4,716.50

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 1%, both applied to gross pay. Bacon and Leung have $13 withheld and Cole and Hicks have $7 withheld for health insurance. Bacon and Leung have $18 withheld to be invested in the travel agencys credit union. Cole has $39.50 withheld and Hicks has $19.25 withheld under a savings bond purchase plan.

Marys Luxury Travels payroll is met by drawing checks on its regular bank account. The checks were issued in sequence, beginning with Check No. 423.

Required:

Question Content Area

1. Prepare a payroll register for Marys Luxury Travel for the week ended March 22, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns.

If required, round your answers to the nearest cent.

			Payroll Register for Period Ended											March 22		20--
			Earnings				Taxable Earnings		Deductions
Name	No. of Allow.	Marit. Status	Regular	Overtime	Total	Cumulative Total	Unemploy. Comp.	Social Security	Federal Income Tax	Social Security Tax	Medicare Tax	City Tax	Health Insurance	Other		Total	Net Pay	Ck. No.
Bacon, Andrea	4	M	fill in the blank b34f1df4e070fcb_1	fill in the blank b34f1df4e070fcb_2	fill in the blank b34f1df4e070fcb_3	fill in the blank b34f1df4e070fcb_4	fill in the blank b34f1df4e070fcb_5	fill in the blank b34f1df4e070fcb_6	fill in the blank b34f1df4e070fcb_7	fill in the blank b34f1df4e070fcb_8	fill in the blank b34f1df4e070fcb_9	fill in the blank b34f1df4e070fcb_10	fill in the blank b34f1df4e070fcb_11	Savings BondCredit Union	fill in the blank b34f1df4e070fcb_13	fill in the blank b34f1df4e070fcb_14	fill in the blank b34f1df4e070fcb_15	fill in the blank b34f1df4e070fcb_16
Cole, Andrew	1	S	fill in the blank b34f1df4e070fcb_17		fill in the blank b34f1df4e070fcb_18	fill in the blank b34f1df4e070fcb_19	fill in the blank b34f1df4e070fcb_20	fill in the blank b34f1df4e070fcb_21	fill in the blank b34f1df4e070fcb_22	fill in the blank b34f1df4e070fcb_23	fill in the blank b34f1df4e070fcb_24	fill in the blank b34f1df4e070fcb_25	fill in the blank b34f1df4e070fcb_26	Savings BondCredit Union	fill in the blank b34f1df4e070fcb_28	fill in the blank b34f1df4e070fcb_29	fill in the blank b34f1df4e070fcb_30	fill in the blank b34f1df4e070fcb_31
Hicks, Melvin	3	M	fill in the blank b34f1df4e070fcb_32	fill in the blank b34f1df4e070fcb_33	fill in the blank b34f1df4e070fcb_34	fill in the blank b34f1df4e070fcb_35	fill in the blank b34f1df4e070fcb_36	fill in the blank b34f1df4e070fcb_37	fill in the blank b34f1df4e070fcb_38	fill in the blank b34f1df4e070fcb_39	fill in the blank b34f1df4e070fcb_40	fill in the blank b34f1df4e070fcb_41	fill in the blank b34f1df4e070fcb_42	Savings BondCredit Union	fill in the blank b34f1df4e070fcb_44	fill in the blank b34f1df4e070fcb_45	fill in the blank b34f1df4e070fcb_46	fill in the blank b34f1df4e070fcb_47
Leung, Cara	1	S	fill in the blank b34f1df4e070fcb_48		fill in the blank b34f1df4e070fcb_49	fill in the blank b34f1df4e070fcb_50	fill in the blank b34f1df4e070fcb_51	fill in the blank b34f1df4e070fcb_52	fill in the blank b34f1df4e070fcb_53	fill in the blank b34f1df4e070fcb_54	fill in the blank b34f1df4e070fcb_55	fill in the blank b34f1df4e070fcb_56	fill in the blank b34f1df4e070fcb_57	Savings BondCredit Union	fill in the blank b34f1df4e070fcb_59	fill in the blank b34f1df4e070fcb_60	fill in the blank b34f1df4e070fcb_61	fill in the blank b34f1df4e070fcb_62
Melling, Melissa	2	M	fill in the blank b34f1df4e070fcb_63		fill in the blank b34f1df4e070fcb_64	fill in the blank b34f1df4e070fcb_65	fill in the blank b34f1df4e070fcb_66	fill in the blank b34f1df4e070fcb_67	fill in the blank b34f1df4e070fcb_68	fill in the blank b34f1df4e070fcb_69	fill in the blank b34f1df4e070fcb_70	fill in the blank b34f1df4e070fcb_71				fill in the blank b34f1df4e070fcb_72	fill in the blank b34f1df4e070fcb_73	fill in the blank b34f1df4e070fcb_74
			fill in the blank b34f1df4e070fcb_75	fill in the blank b34f1df4e070fcb_76	fill in the blank b34f1df4e070fcb_77	fill in the blank b34f1df4e070fcb_78	fill in the blank b34f1df4e070fcb_79	fill in the blank b34f1df4e070fcb_80	fill in the blank b34f1df4e070fcb_81	fill in the blank b34f1df4e070fcb_82	fill in the blank b34f1df4e070fcb_83	fill in the blank b34f1df4e070fcb_84	fill in the blank b34f1df4e070fcb_85		fill in the blank b34f1df4e070fcb_86	fill in the blank b34f1df4e070fcb_87	fill in the blank b34f1df4e070fcb_88

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2. Assuming that the wages for the week ended March 22 were paid on March 24, prepare the journal entry for the payment of the payroll.

Page: 1

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-- Mar. 24	CashCredit Union PayableEmployee Federal Income Tax PayableMedicare Tax PayableSocial Security Tax PayableWages and Salaries Expense	blank	blank	- Select -	- Select -	1
2	blank	City Earnings Tax ExpenseEmployee Federal Income Tax PayableHealth Insurance Premiums ExpenseMedicare Tax ExpenseSocial Security Tax ExpenseWages and Salaries Payable	blank	blank	- Select -	- Select -	2
3	blank	Credit Union ExpenseEmployee Income Tax ExpenseHealth Insurance Premiums ExpenseSocial Security Tax PayableSavings Bond Deductions ExpenseWages and Salaries Payable	blank	blank	- Select -	- Select -	3
4	blank	City Earnings Tax ExpenseEmployee Income Tax ExpenseHealth Insurance Premiums ExpenseMedicare Tax PayableSavings Bond Deductions ExpenseWages and Salaries Payable	blank	blank	- Select -	- Select -	4
5	blank	City Earnings Tax PayableCredit Union ExpenseHealth Insurance Premiums ExpenseMedicare Tax ExpenseSocial Security Tax ExpenseWages and Salaries Payable	blank	blank	- Select -	- Select -	5
6	blank	Credit Union ExpenseEmployee Income Tax ExpenseHealth Insurance Premiums PayableMedicare Tax ExpenseSavings Bond Deductions ExpenseWages and Salaries Payable	blank	blank	- Select -	- Select -	6
7	blank	City Earnings Tax ExpenseCredit Union PayableMedicare Tax ExpenseSocial Security Tax ExpenseSavings Bond Deductions ExpenseWages and Salaries Payable	blank	blank	- Select -	- Select -	7
8	blank	City Earnings Tax ExpenseEmployee Income Tax ExpenseHealth Insurance Premiums ExpenseSocial Security Tax ExpenseSavings Bond Deductions PayableWages and Salaries Payable	blank	blank	- Select -	- Select -	8
9	blank	CashCredit Union ExpenseEmployee Income Tax ExpenseMedicare Tax ExpenseSocial Security Tax ExpenseWages and Salaries Expense	blank	blank	- Select -	- Select -	9
10	blank	Payroll for week ended March 22	blank	blank	blank	blank	10