Answer:
A. Calculation of the amounts omitted in lines (1), (3), (8), and (12):
1. At regular rate
= $365,500
3. Total earnings
= $430,000
8. Union dues
= $2,250
12. Sales Salaries
= $116,100
B. Journal to record the payroll accrual:
Debit:
11. Factory Wages $227,900
12. Sales Salaries $116,100
13. Office Salaries $86,000
Credit Payables:
4. Social security tax $25,800
5. Medicare tax $6,450
6. Income tax withheld $109,700
7. Medical insurance $14,800
8. Union dues $2,250
10. Salaries Payable $271,000
To record the payroll accrual.
C. Journal Entry to record the payment of the payroll:
Debit Payables:
4. Social security tax $25,800
5. Medicare tax $6,450
6. Income tax withheld $109,700
7. Medical insurance $14,800
8. Union dues $2,250
10. Salaries Payable $271,000
Credit Cash Account $430,000
To record the payment of the payroll.
Explanation:
a) Data and Calculation of the amounts omitted in lines (1), (3), (8), and (12):
Earnings:
1. At regular rate $365,500
2. At overtime rate 64,500
3. Total earnings 430,000
Deductions:
4. Social security tax 25,800
5. Medicare tax 6,450
6. Income tax withheld 109,700
7. Medical insurance 14,800
8. Union dues 2,250
9. Total deductions 159,000
10. Net amount paid 271,000
Accounts debited:
11. Factory Wages 227,900
12. Sales Salaries 116,100
13. Office Salaries 86,000
1. At regular rate = 3. Total earnings - 2. At overtime rate
= $430,000 - 64,500
= $365,500
3. Total earnings = 9. Total deductions + 10. Net amount paid
= $159,000 + 271,000
= $430,000
8. Union dues = 9. Total deductions - other deductions from 4 to 7.
= $159,000 - (25,800 + 6,450 + 109,700 + 14,800)
= $2,250
12. Sales Salaries = 3. Total earnings - 11. Factory Wages - 13. Office Salaries)
= (430,000 - 227,900 - 86,000)
= $116,100
