Answer:
A.Earnings at normal rate(1)= $ 460,000.00
Total earnings(3) = $540,000
Union dues(8)= $ 6,750.00
Sales salaries(12)= $ 135,000.00
B.Dr FactoryWages $ 285,000.00
Dr OfficeSalaries $ 120,000.00
Dr SalesSalaries $ 135,000.00
Cr Ss tax $ 32,400.00
Cr Mc tax $ 8,100.00
Cr Income tax withheld $ 135,000.00
Cr Medical insurance $ 18,900.00
Cr Uniondues $ 6,750.00
Cr Wages accrued and payable $ 338,850.00
C.Dr wages accreud and payable$ 338,850.00
Cr Cash $ 338,850.00
Explanation:
In order for us to calculate the ommited in (1) we have to find out the (3) calculated as :
Social securities tax 6% of total earnings $32,400
Medicare tax 1.5% of total earnings $8,100
Therefore let x be the total earnings using 6%
x*6%= $32,400
x= $32,400/6%
= $ 540,000.00
Or let x be the total earnings using 1.5%
x*1.5%= $8,100
x= $8100/1.5%
$ 540,000.00
The total earnings for 3 will be = $540,000
Using this formula to calculate for earnings at normal rate
Earnings at normal rate=total earnings -overtime rate
Let plug in the formula
$540000-$80000= $ 460,000.00
Therefore earnings at normal rate for (1)= $460,000.00
In order to calculate for 8,we have to substract the total deductions form taxes and insurances
Using this formula
Total deductions=social security +medicare+income tax held+union dues+medical insurance
Hence,
$201150=$32400+$8100+$135000+$18900+union dues
Union dues(8)=$201150-32400-8100-135000-18900
Union dues(8)= $ 6,750.00
In order to calculate for 12 sales salaries,we have to deduct total earnings from factory wages and office salaries
Using this formula
Sales salaries=total earnings -factory wages and office salaries
Sales
salaries(12)=$540000-$285000-$120000
sales salaries(12)= $ 135,000.00
Therefore:
Earnings at normal rate(1)= $ 460,000.00
Total earnings(3) = $540,000
Union dues(8)= $ 6,750.00
Sales salaries(12)= $ 135,000.00
B. Journalising the entry to record payroll
Dr FactoryWages $ 285,000.00
Dr OfficeSalaries $ 120,000.00
Dr SalesSalaries $ 135,000.00
Cr Ss tax $ 32,400.00
Cr Mc tax $ 8,100.00
Cr Income tax withheld $ 135,000.00
Cr Medical insurance $ 18,900.00
Cr Uniondues $ 6,750.00
Cr Wages accrued and payable $ 338,850.00
(being the payroll recorded)
C.Dr wages accrued and payable $ 338,850.00
Cr Cash $ 338,850.00
(Being the payment made to staff)
