HTT 303 Lecture Notes - Snail Mail, Variable Cost, Fixed Cost
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Payroll Worksheet and Journal Entries
The payroll records of UX Corporation for the week endingOctober 7, the fortieth week in the year, show the following:
Employee | Classification | Salary or Wage per 40hr Week | Hours Worked | Income Tax Withheld | Gross Earnings Through 39th Week |
Allen | President | $2,489 | 40 | $488 | $109,560 |
Devine | V. President | $2,238 | 40 | $402 | $99,500 |
Fiorelli | Supervisor-Production | $700 | 40 | $180 | $27,300 |
O’Clock | Factory-Direct | $500 | 48 | $150 | $19,820 |
O’Reilly | Factory-Direct | $400 | 46 | $160 | $17,200 |
Pawlukiewicz | Factory-Direct | $400 | 44 | $110 | $16,600 |
Surdick | Factory-Direct | $380 | 42 | $120 | $15,200 |
Trebbi | Factory-Indirect | $300 | 42 | $80 | $7,800 |
Webb | Factory-Indirect | $300 | 42 | $60 | $6,600 |
Required:
1. Complete a worksheet with the following column headings:
Employee – 3 columns for Earnings for Week:
*Use one for Regular Pay
*Use one for Overtime Premium Pay
*Use one for (the company pays time-and-a-half for overtime for allemployees below the supervisory level)
*Use one for Total for Week
Total Earnings Through 14th Week
FICA Taxable Earnings
FICA
Income Tax Withheld
Net Earnings
2. Prepare journal entries for the following:
a. Payroll for the 14th Week
b. Payment of payroll for the week
c. Distribution of the payroll costs, assuming that overtimepremium is charged to all jobs worked on during the period.
d. Employer’s Payroll Tax Liability
3. The company carries disability insurance policy for theemployees at a cost of $15 per week for each employee. Journalizethe employer’s cost of insurance premiums for the week.