Writing Project Presentation
OfficialADMIN
payrollreport11.xlsxInformation
| Information | |||
| ABC Company | |||
| Number of Employees | 7 | ||
| Employee Name | Hours worked | Hourly rate | |
| John Doe | 40 | $25.00 | |
| Jane Jones | 40 | $24.00 | |
| Jessie Smith | 40 | $17.00 | |
| Erik Ackers | 25 | $15.00 | |
| Nan Schmit | 30 | $17.00 | |
| Larry Johnson | 35 | $18.00 | |
| Christopher Hay | 40 | $18.00 | |
| Assume Federal Income Tax will be withheld at a rate of 20% for everyone. | |||
| FICA Social Security rate is 6.2% and Medicare is 1.45%. | |||
| When you called your State, they told you that your State Unemployment tax rate would be 5.4%. | |||
| Recall that the Federal Unemployment rate is the same for all businesses. | |||
| Required: | |||
| Complete the Payroll Report worksheet | |||
| Use the Transactions worksheet to complete your Journal |
Payroll Report
| Required: Complete the payroll report below using the information provided on the Information tab. | ||||||||
| January | ||||||||
| Employee Name | Hours worked | Hourly rate | Gross Pay | Federal Withholding | Social Security | Medicare | Net | |
| John Doe | 40 | $25.00 | $1,000 | $200 | $62 | $14.50 | $723.50 | |
| Jane Jones | 40 | $24.00 | $960 | $192 | $59.52 | $13.92 | $694.56 | |
| Jessie Smith | 40 | $17.00 | $680 | $136 | $42.16 | $9.86 | $491.98 | |
| Erik Ackers | 25 | $15.00 | $375 | $75 | $23.25 | $5.44 | $271.31 | |
| Nan Schmit | 30 | $17.00 | $510 | $102 | $31.62 | $7.40 | $368.98 | |
| Larry Johnson | 35 | $18.00 | $630 | $126 | $39.06 | $9.14 | $455.80 | |
| Christopher Hay | 40 | $18.00 | $720 | $144 | $44.64 | $10.44 | $520.92 | |
| Totals | 250 | $134 | $4,875 | $975 | $302.25 | $70.69 | $3,527.06 | |
Transactions
| Required: Use the transactions below to complete your Journal on the next worksheet. | ||
| Tip: Refer to pages 473-476 of your text for examples. | ||
| Transactions | ||
| January | 1 | Record accrued payroll for January using the Payroll Report |
| 2 | Record employer payroll taxes for the same Payroll Report (hint - remember to record FUTA and SUTA as well) | |
| 7 | Record payment of cash to employees. | |
Journal
| Required: Enter the journal entries from the transactions found on the Transaction worksheet | |||
| Journal Entries | |||
| Date | Account Title | Debit | Credit |
| Initial Recordation | |||
| Gross Wages | $4,875 | ||
| Federal Income Tax Payable | $975 | ||
| FICA Tax Payable social security | $302.25 | ||
| Medicare | $70.69 | ||
| Wages payable | $3,527.06 | ||
| Accrued Wages | |||
| Wages payable | $3,527.06 | ||
| Cash | $3,527.06 | ||
| Entry 3 | |||
| Federal Income Tax Payable | $975 | ||
| FICA Tax Payable social security | $302.25 | ||
| Medicare | $70.69 | ||
| FICA Tax (employer portion) payable | $302.25 | ||
| Federal unemployment Payable | $292.50 | ||
| State unemployment Payable | $263.25 | ||
| Cash | $2,205.94 | ||
