Accounting Principles: P11-3A Del Hardware (Payroll Accounting)

Accounting Principles

P11-3A
Del Hardware has four employees who are paid on an hourly basis plus time-and-a half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2010, are presented below.

Employee Hours Hourly Rate Federal Income Tax Withholdings United Fund

Joe Devena 40 $15 $?? $5

Mary Keener 42 $15 $?? $5

Andy Dye 44 $13 $60 $8

Kim Shen 46 $13 $61 $5

Devena and Keener are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 8%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%. The first three employees are sales clerks (store wages expense). The fourth employee performs administrative duties (office wages expense).

Instructions´╝Ü

a. Prepare a payroll register for the weekly payroll. (Use the wage-bracket withholding table in the text for federal income tax withholdings.) (Round hours to 0 decimal places, e.g. 125. Round other answers to 2 decimal places, e.g. 10.50. If answer is zero, please enter 0. Do not leave any fields blank.)

b. Journalize the payroll on March 15, 2010, and the accrual of employer payroll taxes. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)

c. Journalize the payment of the payroll on March 16, 2010. (Round answers to 2 decimal places, e.g. 10.50.)

d. Journalize the deposit in a Federal Reserve bank on March 31, 2010, of the FICA and federal income taxes payable to the government. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)
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