2. Accounting
3. 1 calculate payroll breakin away company has three employeesa consultant...

# Question: 1 calculate payroll breakin away company has three employeesa consultant...

###### Question details

1. Calculate Payroll

Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

 Consultant Computer Programmer Administrator Regular earnings rate $2,910 per week$30 per hour $44 per hour Overtime earnings rate Not applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances 3 2 1 For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined by adding$356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is$70.

Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places.

 Consultant Computer Programmer Administrator Gross pay  $Net pay$ 

2.

Summary Payroll Data

In the following summary of data for a payroll period, some amounts have been intentionally omitted:

 Earnings: 1. At regular rate ? 2. At overtime rate $65,100 3. Total earnings ? Deductions: 4. Social security tax 26,040 5. Medicare tax 6,510 6. Income tax withheld 110,700 7. Medical insurance 15,000 8. Union dues ? 9. Total deductions 161,000 10. Net amount paid 273,000 Accounts debited: 11. Factory Wages 230,000 12. Sales Salaries ? 13. Office Salaries 86,800 a. Calculate the amounts omitted in lines (1), (3), (8), and (12).  (1)$ (3) $(8)$ (12) $b. Journalize the entry to record the payroll accrual. If an amount box does not require an entry, leave it blank. c. Journalize the entry to record the payment of the payroll. The payroll register for Gamble Company for the week ended April 29 indicated the following:  Salaries$1,440,000 Social security tax withheld 86,400 Medicare tax withheld 21,600 Federal income tax withheld 288,000

In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6%, respectively, on \$244,000 of salaries.

Required:
A. Journalize the entry to record the payroll for the week of April 29.*
B. Journalize the entry to record the payroll tax expense incurred for the week of April 29.*
 * Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Gamble Company
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 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable
 EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary
 REVENUE 410 Sales 610 Interest Revenue
 EXPENSES 510 Cost of Merchandise Sold 520 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 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 710 Interest Expense