The following data for Throwback Industries Inc. relate to the payroll for the week ended December 7, 2014:

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 7, 2014:
















Employee
Hours
Worked
Hourly
Rate
Weekly
Salary
Federal
Income Tax
U.S. Savings
Bonds
Aaron 46 $68.00 $766.36 $100
Cobb 41 62.00 553.20 110
Clemente 48 70.00 691.60 120
DiMaggio 35 56.00 411.60 0
Griffey, Jr. 45 62.00 618.45 130
Mantle $1,800 432.00 120
Robinson 36 54.00 291.60 130
Williams 2,000 440.00 125
Vaughn 42 62.00 533.20 50



Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0%, and Medicare tax is 1.5% of each employee’s annual earnings. The next payroll check to be used is No. 901.



Instructions
1. Prepare a payroll register for Throwback Industries Inc. for the week ended December 7, 2014. Use the following columns for the payroll register: Employee, Total Hours, Regular Earnings, Overtime Earnings, Total Earnings, Social Security Tax, Medicare Tax, Federal Income Tax, U.S. Savings Bonds, Total Deductions, Net Pay, Ck. No., Sales Salaries Expense, and Office Salaries Expense.

2. Journalize the entry to record the payroll for the week.


Answer:















1. PAYROLL FOR WEEK ENDING December 7, 2014
Employee
Total
Hours
EARNINGS DEDUCTIONS PAID ACCOUNT DEBITED
Regular Overtime Total
Social
Security
Tax
Medicare
Tax
Federal
Income
Tax
U.S.
Savings
Bonds Total
Net
Pay
Ck.
No.
Sales
Salaries
Expense
Office
Salaries
Expense
Aaron 46 2,720.00 612.00 3,332.00 199.92 49.98 766.36 100.00 1,116.26 2,215.74 901 3,332.00
Cobb 41 2,480.00 93.00 2,573.00 154.38 38.60 553.20 110.00 856.18 1,716.82 902 2,573.00
Clemente 48 2,800.00 840.00 3,640.00 218.40 54.60 691.60 120.00 1,084.60 2,555.40 903 3,640.00
DiMaggio 35 1,960.00 1,960.00 117.60 29.40 411.60 558.60 1,401.40 904 1,960.00
Griffey, Jr. 45 2,480.00 465.00 2,945.00 176.70 44.18 618.45 130.00 969.33 1,975.67 905 2,945.00
Mantle 1,800.00 108.00 27.00 432.00 120.00 687.00 1,113.00 906 1,800.00
Robinson 36 1,944.00 1,944.00 116.64 29.16 291.60 130.00 567.40 1,376.60 907 1,944.00
Williams 2,000.00 120.00 30.00 440.00 125.00 715.00 1,285.00 908 2,000.00
Vaughn 42 2,480.00 186.00 2,666.00 159.96 39.99 533.20 50.00 783.15 1,882.85 909 2,666.00
16,864.00 2,196.00 22,860.00 1,371.60 342.91 4,738.01 885.00 7,337.52 15,522.48 19,060.00 3,800.00
2. Sales Salaries Expense 19,060.00
Office Salaries Expense 3,800.00
Social Security Tax Payable 1,371.60
Medicare Tax Payable 342.91
Employees Federal Income Tax Payable 4,738.01
Bond Deductions Payable 885.00
Salaries Payable 15,522.48

The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:

The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:











211 Salaries Payable — 218 Bond Deductions Payable $ 3,400
212 Social Security Tax Payable $ 9,273 219 Medical Insurance Payable 27,000
213 Medicare Tax Payable 2,318 411 Operations Salaries Expense 950,000
214 Employees Federal Income Tax Payable 15,455 511 Officers Salaries Expense 600,000
215 Employees State Income Tax Payable 13,909 512 Office Salaries Expense 150,000
216 State Unemployment Tax Payable 1,400 519 Payroll Tax Expense 137,951
217 Federal Unemployment Tax Payable 500



The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:

Dec. 2. Issued Check No. 410 for $3,400 to Jay Bank to purchase U.S. savings bonds for employees.
2. Issued Check No. 411 to Jay Bank for $27,046 in payment of $9,273 of social security tax, $2,318 of Medicare tax, and $15,455 of employees’ federal income tax due.
13. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:





















Salary distribution:
Operations $43,200
Officers 27,200
Office 6,800 $77,200
Deductions:
Social security tax $ 4,632
Medicare tax 1,158
Federal income tax withheld 15,440
State income tax withheld 3,474
Savings bond deductions 1,700
Medical insurance deductions 4,500 30,904
Net amount $46,296






Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll.
13. Journalized the entry to record payroll taxes on employees’ earnings of December
13: social security tax, $4,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125.
16. Issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 of employees’ federal income tax due.
19. Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in payment of the semiannual premium on the group medical insurance policy.
27. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:




















Salary distribution:
Operations $42,800
Officers 28,000
Office 7,000 $77,800
Deductions:
Social security tax $ 4,668
Medicare tax 1,167
Federal income tax withheld 15,404
State income tax withheld 3,501
Savings bond deductions 1,700 26,440
Net amount $51,360








27. Issued Check No. 541 in payment of the net amount of the biweekly payroll.
27. Journalized the entry to record payroll taxes on employees’ earnings of December
27: social security tax, $4,668; Medicare tax, $1,167; state unemployment tax, $225; federal unemployment tax, $75.
27. Issued Check No. 543 for $20,884 to State Department of Revenue in payment of employees’ state income tax due on December 31.
31. Issued Check No. 545 to Jay Bank for $3,400 to purchase U.S. savings bonds for employees.
31. Paid $45,000 to the employee pension plan. The annual pension cost is $60,000. (Record both the payment and unfunded pension liability.)


Instructions
1. Journalize the transactions.
2. Journalize the following adjusting entries on December 31:
a. Salaries accrued: operations salaries, $8,560; officers salaries, $5,600; office salaries, $1,400. The payroll taxes are immaterial and are not accrued.
b. Vacation pay, $15,000.


Answer:




























































1. Dec. 2 Bond Deductions Payable 3,400
Cash 3,400
2 Social Security Tax Payable 9,273
Medicare Tax Payable 2,318
Employees Federal Income Tax Payable 15,455
Cash 27,046
13 Operations Salaries Expense 43,200
Officers Salaries Expense 27,200
Office Salaries Expense 6,800
Social Security Tax Payable 4,632
Medicare Tax Payable 1,158
Employees Federal Income Tax Payable 15,440
Employees State Income Tax Payable 3,474
Bond Deductions Payable 1,700
Medical Insurance Payable 4,500
Salaries Payable 46,296
13 Salaries Payable 46,296
Cash 46,296
13 Payroll Tax Expense 6,265
Social Security Tax Payable 4,632
Medicare Tax Payable 1,158
State Unemployment Tax Payable 350
Federal Unemployment Tax Payable 125
16 Social Security Tax Payable 9,264
Medicare Tax Payable 2,316
Employees Federal Income Tax Payable 15,440
Cash 27,020
19 Medical Insurance Payable 31,500
Cash 31,500

Dec. 27 Operations Salaries Expense 42,800
Officers Salaries Expense 28,000
Office Salaries Expense 7,000
Social Security Tax Payable 4,668
Medicare Tax Payable 1,167
Employees Federal Income Tax Payable 15,404
Employees State Income Tax Payable 3,501
Bond Deductions Payable 1,700
Salaries Payable 51,360
27 Salaries Payable 51,360
Cash 51,360
27 Payroll Tax Expense 6,135
Social Security Tax Payable 4,668
Medicare Tax Payable 1,167
State Unemployment Tax Payable 225
Federal Unemployment Tax Payable 75
27 Employees State Income Tax Payable 20,884
Cash 20,884
31 Bond Deductions Payable 3,400
Cash 3,400
31 Pension Expense 60,000
Cash 45,000
Unfunded Pension Liability 15,000
To record pension cost and unfunded
liability.
2. a. Dec. 31 Operations Salaries Expense 8,560
Officers Salaries Expense 5,600
Office Salaries Expense 1,400
Salaries Payable 15,560
Accrued wages for the period.
b. 31 Vacation Pay Expense 15,000
Vacation Pay Payable 15,000
Vacation pay accrued for the period.

The following data for Flexco Inc. relate to the payroll for the week ended December 7, 2014

The following data for Flexco Inc. relate to the payroll for the week ended December 7, 2014:
















Employee
Hours
Worked
Hourly
Rate
Weekly
Salary
Federal
Income Tax
U.S. Savings
Bonds
Carlton 52 $50.00 $667.00 $ 60
Grove $4,000 860.00 100
Johnson 36 52.00 355.68 0
Koufax 45 58.00 578.55 44
Maddux 37 45.00 349.65 62
Seaver 3,200 768.00 120
Spahn 46 52.00 382.20 0
Winn 48 50.00 572.00 75
Young 43 54.00 480.60 80



Employees Grove and Seaver are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0% of each employee’s annual earnings, and Medicare tax is 1.5% of each employee’s annual earnings. The next payroll check to be used is No. 328.

Instructions
1. Prepare a payroll register for Flexco Inc. for the week ended December 7, 2014. Use the following columns for the payroll register: Employee, Total Hours, Regular Earnings, Overtime Earnings, Total Earnings, Social Security Tax, Medicare Tax, Federal Income Tax, U.S. Savings Bonds, Total Deductions, Net Pay, Ck. No., Sales Salaries Expense, and Office Salaries Expense.

2. Journalize the entry to record the payroll for the week.


Answer:

1. PAYROLL FOR WEEK ENDING December 7, 2014
Employee
Total
Hours
EARNINGS DEDUCTIONS PAID ACCOUNT DEBITED
Regular Overtime Total
Social
Security
Tax
Medicare
Tax
Federal
Income
Tax
U.S.
Savings
Bonds Total
Net
Pay
Ck.
No.
Sales
Salaries
Expense
Office
Salaries
Expense
Carlton 52 2,000.00 900.00 2,900.00 174.00 43.50 667.00 60.00 944.50 1,955.50 328 2,900.00
Grove 4,000.00 240.00 60.00 860.00 100.00 1,260.00 2,740.00 329 4,000.00
Johnson 36 1,872.00 1,872.00 112.32 28.08 355.68 496.08 1,375.92 330 1,872.00
Koufax 45 2,320.00 435.00 2,755.00 165.30 41.33 578.55 44.00 829.18 1,925.82 331 2,755.00
Maddux 37 1,665.00 1,665.00 99.90 24.98 349.65 62.00 536.53 1,128.47 332 1,665.00
Seaver 3,200.00 192.00 48.00 768.00 120.00 1,128.00 2,072.00 333 3,200.00
Spahn 46 2,080.00 468.00 2,548.00 152.88 38.22 382.20 573.30 1,974.70 334 2,548.00
Winn 48 2,000.00 600.00 2,600.00 156.00 39.00 572.00 75.00 842.00 1,758.00 335 2,600.00
Young 43 2,160.00 243.00 2,403.00 144.18 36.05 480.60 80.00 740.83 1,662.17 336 2,403.00
14,097.00 2,646.00 23,943.00 1,436.58 359.16 5,013.68 541.00 7,350.42 16,592.58 16,743.00 7,200.00
2. Sales Salaries Expense 16,743.00
Office Salaries Expense 7,200.00
Social Security Tax Payable 1,436.58
Medicare Tax Payable 359.16
Employees Federal Income Tax Payable 5,013.68
Bond Deductions Payable 541.00
Salaries Payable 16,592.58