Question

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The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 20Y8:

Employee	Hours Worked	Hourly Rate	Weekly Salary	Federal Income Tax	Retirement Savings
Aaron	43	$70		$689.44	$105
Cobb	43	58		539.92	115
Clemente	45	64		668.44	125
DiMaggio	39	52		377.80	0
Griffey, Jr.	48	64		749.08	135
Mantle			$1,700	317.45	125
Robinson	38	53		387.32	135
Williams			2,100	426.24	130
Vaughn	48	64		770.08	70

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.

	Required:
1.	Prepare a payroll register for Throwback Industries Inc. for the week ended December 9, 20Y8. Assume the normal working hours in a week are 40 hours. Enter amounts as positive numbers and round your intermediate calculations and final answers to the nearest whole cent (two decimal places).
2.	Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

Throwback Industries

General Ledger

	ASSETS
110	Cash
111	Accounts Receivable
112	Interest Receivable
113	Notes Receivable
115	Merchandise Inventory
116	Supplies
118	Prepaid Insurance
120	Land
123	Building
124	Accumulated Depreciation-Building
125	Office Equipment
126	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
213	Interest Payable
214	Notes Payable
215	Salaries Payable
216	Social Security Tax Payable
217	Medicare Tax Payable
218	Employees Federal Income Tax Payable
221	Retirement Savings Deductions Payable
224	Federal Unemployment Tax Payable
225	State Unemployment Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Office Salaries Expense
521	Sales Salaries Expense
524	Depreciation Expense-Building
525	Delivery Expense
526	Repairs Expense
529	Selling Expenses
531	Rent Expense
532	Depreciation Expense-Office Equipment
533	Insurance Expense
534	Supplies Expense
535	Payroll Tax Expense
538	Cash Short and Over
539	Product Warranty Expense
540	Miscellaneous Expense
710	Interest Expense

Payroll Register

Shaded cells have feedback.

1. Prepare a payroll register for Throwback Industries Inc. for the week ended December 9, 20Y8. Assume the normal working hours in a week are 40 hours. Enter amounts as positive numbers and round your intermediate calculations and final answers to the nearest whole cent (two decimal places).

Score: 15/315

Payroll for Week Ending December 9, 20Y8

1			Earnings	Earnings	Earnings	Deductions	Deductions	Deductions	Deductions	Deductions	Paid	Paid	Account Debited	Account Debited
2	Employee	Total Hours	Regular	Overtime	Total	Social Security Tax	Medicare Tax	Federal Income Tax	Retirement Savings	Total	Net Pay	Ck. No.	Sales Salaries Expense	Office Salaries Expense
3	Aaron	43.00						$689.44	$105.00			#901
4	Cobb	43.00						539.92	115.00			#902
5	Clemente	45.00						668.44	125.00			#903
6	DiMaggio	39.00						377.80				#904
7	Griffey, Jr.	48.00						749.08	135.00			#905
8	Mantle							317.45	125.00			#906
9	Robinson	38.00						387.32	135.00			#907
10	Williams							426.24	130.00			#908
11	Vaughn	48.00						770.08	70.00			#909
12								$4,925.77	$940.00

Points:

3.57 / 75

Journal

Shaded cells have feedback.

2. Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles.

How does grading work?

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Score: 71/85

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	?	?
2		?
3		?
4		?
5		?
6		?
7		?

Answer 1

ans a							Deductions	Deductions	Deductions
Payroll register						C	S	M	F	U	D		Accounts debited
Employee	Total hours T	Hourly Rate H	Weekly Salary	Earning Regular 40*H	earnings Overtime (T-40)*H*1.5	Total earning C	social security taxes C*6%	Medicare taxes C*1.5%	Federal Income Tax	Retirement Savings	Total deduction D=S+M+F+U	Net Pay C-D	Sales saleries expenses	Office salaries expenses
Aaron	43	$70		$2,800.00	$315.00	$3,115.00	$186.90	$46.73	$689.44	$105	$1,028.07	$2,086.94	$3,115.00
Cobb	43	58		$2,320.00	$261.00	$2,581.00	$154.86	$38.72	539.92	115	$848.50	$1,732.51	$2,581.00
Clemente	45	64		$2,560.00	$480.00	$3,040.00	$182.40	$45.60	668.44	125	$1,021.44	$2,018.56	$3,040.00
Dimaggio	39	52		$2,028.00		$2,028.00	$121.68	$30.42	377.8	0	$529.90	$1,498.10	$2,028.00
Griffery	48	64		$2,560.00	$768.00	$3,328.00	$199.68	$49.92	749.08	135	$1,133.68	$2,194.32	$3,328.00
mantle			$1,700	$1,700		$1,700.00	$102.00	$25.50	317.45	125	$569.95	$1,130.05		$1,700.00
Robbinson	38	53		$2,014.00		$2,014.00	$120.84	$30.21	387.32	135	$673.37	$1,340.63	$2,014.00
Williams			2,100	$2,100		$2,100.00	$126.00	$31.50	426.24	130	$713.74	$1,386.26		$2,100.00
Voughan	48	64		$2,560.00	$768.00	$3,328.00	$199.68	$49.92	770.08	70	$1,089.68	$2,238.32	$3,328.00
Total				$20,642.00	$2,592.00	$23,234.00	$1,394.04	$348.51	$4,925.77	$940	$7,608.32	$15,625.68	$19,434.00	$3,800.00
ans b
Accounts title	Dr	Cr	Assets	Liabilities	equity
Sales salaries expenses	$19,434.00				($19,434.00)
Office salaries expenses	$3,800.00				($3,800.00)
Social Security taxes payable		$1,394.04		$1,394.04
Medicare taxes payable		$348.51		$348.51
Employees Federal Income taxes payable		$4,925.77		$4,925.77
Retirement Savings Deductions Payable		$940.00		$940.00
Salaries Payable		$15,625.68		$15,625.68
(being payroll recorded)
If any doubt please comment