Reference no: EM132627125

Question - Journalize Period Payroll

Q1. The payroll register of Patel Engineering Co. indicates $2,580 of social security withheld and $645 of Medicare tax withheld on total salaries of $43,000 for the period. Federal withholding for the period totaled $7,310.

Provide the journal entry for the period's payroll. If an amount box does not require an entry, leave it blank.

A business issued a 90-day note for $57,000 to a creditor on account. The note was discounted at 9%. Assume a 360-day year.

a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. If necessary, round to one decimal place.

b. Journalize the entry to record the payment of the note at maturity.

Q2. Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

ConsultantComputer ProgrammerAdministratorRegular earnings rate$3,110 per week $30 per hour $42 per hour Overtime earnings rateNot applicable 1.5 times hourly rate 2 times hourly rate Number of withholding allowances3 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.