2011 Problem 10.3A (Static) Computing gross earnings, determining deductions, preparing payroll register, journalizing payroll transactions. LO 10-2, 10-3, 10-4, 10-5 Alex Wilson operates On-Time Courier Service. The company has four employees who are paid on an hourly basis. During the workweek beginning December 15 and ending December 21, 20X1, employees worked the number of hours shown below. Information about their hourly rates, marital status, and withholding allowances also appears below, along with their cumulative earnings for the year prior to the December 15-21 payroll period. Consider any hours worked beyond 40 in the week as overtime hours and overtime pay at one and one-half times their regular hourly rate. nces Employee Grace Dodger Hours Regular Marital Withholding Cumulative Worked Hourly Rate Status Allowances Earnings 47 $16.70 M 4 $32,860 Ron Dollar 49 26.901 M 3 53,972 Alex Garcia 43 28.50 B 1 Red Russell 40 13.70 S 0 57,300 26,620 Required: 2. Compute the regular, overtime, and gross earnings for each employee. Enter the figures in the payroll register. 3. Compute the amount of social security tax to be withheld from each employee's gross earnings. Assume a 6.2 percent social security rate on the first $132,900 earned by the employee during the year. Enter the figures in the payroll register. 4. Compute the amount of Medicare tax to be withheld from each employee's gross earnings. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Enter the figures in the payroll register. 5. Determine the amount of federal income tax to be withheld from each employee's total earnings. Use the tax tables in Figure 10.2a & Figure 10.2b to determine the withholding for Russell. Withholdings are $112.00 for Dodger, $323.00 for Garcia, and $258 for Dollar. Enter the figures in the payroll register. 6. Compute the net amount due to each employee and enter the figures in the payroll register. 7. Dodger and Russell are office workers. Garcia and Dollar are delivery workers. 8. Prepare a general journal entry to record the payroll for the week ended December 21, 20X1. 9. Prepare a general journal entry on December 23 to summarize payment of wages for the week. Analyze: What percentage of total taxable wages was delivery wages? Payroll Register General Journal Analyze Compute the regular, overtime, gross earnings; social security tax and Medicare tax to be withheld from each employee's earnings. Assume a 6.2 percent social security rat during the year. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Determine the amount of federal income tax tr (Use the table shown in Figure 10.2A & Figure 10.28 whichever is applicable) to determine the withholding for Russell. Withholdings for Dodger is $112.00, $323.00 for i amount due to each employee. (Dodger and Russell are office workers. Garcia and Dollar are delivery workers.) (Round your intermediate calculations and final answers to Paid: December 23, 2 Distribution Payroll Register Week Beginning: December 15, 20x1 And ending: December 21, 20X1 Earnings Taxable wages Deductions Regular time Overtime earnings earnings Gross earnings Cumulative warnings Social security Medicare Social security Medicare Income tax Net amount Office wages Employee Grace Dodger Ron Dollar Alex Garcia Red Russell $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Isecurity tax and Medicare tax to be withheld from each employee's earnings. Assume a 6.2 percent social security rate on the first $132,900 earned by the employee rate on all salaries and wages earned by the employee during the year. Determine the amount of federal income tax to be withheld from each employee's total earnings. 1B whichever is applicable) to determine the withholding for Russell. Withholdings for Dodger is $112.00, $323.00 for Garcia, and $258 for Dollar. Finally compute the net ire office workers. Garcia and Dollar are delivery workers.) (Round your intermediate calculations and final answers to 2 decimal places.) Show less 2X1 And ending: December 21, 20X1 Paid: December 23, 20x1 Taxable wages Deductions Distribution Cumulative earnings Social security Medicare Social security Medicare Income tax Net amount Office wages Delivery wages 100 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 General Journal > Journal entry worksheet < 1 2 Record the company's payroll to be paid at a later date. Note: Enter debits before credits. Date Dec 21, 20X1 General Journal Debit Credit Record entry Clear enter > Journal entry worksheet < 1 2 Record the entry to summarize payment of the payroll. Note: Enter debits before credits. Date Dec 23, 20X1 General Journal Debit Credit Payroll Register General Journal Analyze What percentage of total taxable wages was delivery wages? (Round your intermediate calculations and final answer to 2 decimal places.) Percentage of delivery wages %