Problem 8

(1)Time cards are being entered into the accounting system for four employees. The cost for employee 1 are to be billed to job cost code 302.01.01100L Ten hours of Employee 2 time is to be billed to job cost code 302.010610L and the remaining 30 hours are to be billed to job cost code 302.01.06210L. Employee 3 took vacation this entire week and employee 4 works in the main office. The employee costs and deductions withheld fro the employees check are shown in table 3-1 using the chart of accounting in figure. 2-1. Determine the changes to the balance sheet, income statement, job cost ledger and equipment ledger as the result of entering the employees time into the accounting system.

(2) Using the chart of accounts in Figure 2-1, determine the changes to the balance sheet, income statement, job cost ledger, and equipment ledger as the result of paying the employees in question (1) for one weeks work.

Figure 2-1

Accounting Transactions 49 Table 3:-1 Employe Costs and Desductions Employee ($) 2 4 Total Employer's Costs Wages Social Security Medicare SUTA FUTA Liability Insurance Workers' Comp. Health Insurance Vacation 600.00 37.20 8.70 18.00 4.80 12.00 54,00 40.00 38.92 813.62 350.00 21.70 1,850.00 114.70 26.83 24.80 31.00 12.00 3.20 8.00 36.00 40.00 29.79 559.59 10.50 2.80 7.00 31.50 40.00 27.51 496.09 15.00 4.00 10.00 15.00 4.80 37.00 136.50 160.00 129.42 2,524.75 33.20 655.45 Total Employee Deductions Social Security Medicare Federal Withholdings State Withholdings Health Insurance 114.70 31.00 7.25 44.85 30.00 60.00 173.10 21.70 37.20 8.70 59.85 36.00 60.00 201.75 24.80 5.80 29.85 24.00 60.00 144.45 26.83 156.90 111.00 240.00 649.43 22.35 60.00 130.13 Total