Question

Payroll Worksheet and Journal Entries

The payroll records of UX Corporation for the week endingOctober 7, the fortieth week in the year, show the following:

Employee	Classification	Salary or Wage per 40hr Week	Hours Worked	Income Tax Withheld	Gross Earnings Through 39th Week
Allen	President	$2,489	40	$488	$109,560
Devine	V. President	$2,238	40	$402	$99,500
Fiorelli	Supervisor-Production	$700	40	$180	$27,300
O’Clock	Factory-Direct	$500	48	$150	$19,820
O’Reilly	Factory-Direct	$400	46	$160	$17,200
Pawlukiewicz	Factory-Direct	$400	44	$110	$16,600
Surdick	Factory-Direct	$380	42	$120	$15,200
Trebbi	Factory-Indirect	$300	42	$80	$7,800
Webb	Factory-Indirect	$300	42	$60	$6,600

Required:

1. Complete a worksheet with the following column headings:

Employee – 3 columns for Earnings for Week:

*Use one for Regular Pay

*Use one for Overtime Premium Pay

*Use one for (the company pays time-and-a-half for overtime for allemployees below the supervisory level)

*Use one for Total for Week

Total Earnings Through 14^th Week

FICA Taxable Earnings

FICA

Income Tax Withheld

Net Earnings

2. Prepare journal entries for the following:

a. Payroll for the 14^th Week

b. Payment of payroll for the week

c. Distribution of the payroll costs, assuming that overtimepremium is charged to all jobs worked on during the period.

d. Employer’s Payroll Tax Liability

3. The company carries disability insurance policy for theemployees at a cost of $15 per week for each employee. Journalizethe employer’s cost of insurance premiums for the week.