Problem 11-3A (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
a. Prepare a payroll register for the weekly payroll. (Use the
wage-bracket withholding table in the text for federal income tax
withholdings.)
b. Journalize the payroll on March 15, 2010, and the accrual of employer payroll taxes.
c. Journalize the payment of the payroll on March 16, 2010.
d. Journalize the deposit in a Federal Reserve bank on March 31, 2010,
of the FICA and federal income taxes payable to the government.
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