In the following summary of data for a payroll period, some amounts have been intentionally omitted:

In the following summary of data for a payroll period, some amounts have been intentionally omitted:


























Earnings:
1. At regular rate ?
2. At overtime rate $80,000
3. Total earnings ?

Deductions:
4. Social security tax 32,400
5. Medicare tax 8,100
6. Income tax withheld 135,000
7. Medical insurance 18,900
8. Union dues ?
9. Total deductions 201,150
10. Net amount paid 338,850

Accounts debited:
11. Factory Wages 285,000
12. Sales Salaries ?
13. Office Salaries 120,000








a. Calculate the amounts omitted in lines (1), (3), (8), and (12).
b. Journalize the entry to record the payroll accrual.
c. Journalize the entry to record the payment of the payroll.


Answer:





























a. Summary: (1) $460,000; (3) $540,000; (8) $6,750; (12) $135,000
Net amount paid…………………………………………………… $338,850
Total deductions………………………………………………… 201,150
(3) Total earnings……………………………………………………… $540,000
Overtime…………………………………………………………… 80,000
(1) Regular…………………………………………………………… $460,000
Total deductions………………………………………………… $201,150
Social security tax……………………………………………… $ 32,400
Medicare tax……………………………………………………… 8,100
Income tax withheld……………………………………………… 135,000
Medical insurance……………………………………………… 18,900 194,400
(8) Union dues………………………………………………………… $ 6,750
Total earnings…………………………………………………… $540,000
Factory wages……………………………………………………… $285,000
Office salaries…………………………………………………… 120,000 405,000
(12) Sales salaries……………………………………………………… $135,000
b.
 Factory Wages Expense 285,000
Sales Salaries Expense 135,000
Office Salaries Expense 120,000
Social Security Tax Payable 32,400
Medicare Tax Payable 8,100
Employees Income Tax Payable 135,000
Medical Insurance Payable 18,900
Union Dues Payable 6,750
Salaries Payable 338,850
c.
 Salaries Payable 338,850
Cash 338,850