Gonzalez Company has the following data for the weekly payroll ending January 31.
|
Federal |
|||||||||
|
Hourly |
Income Tax |
Health |
|||||||
|
Employee |
M |
T |
W |
T |
F |
S |
Rate |
Withholding |
Insurance |
|
M. Mozart |
8 |
8 |
9 |
8 |
10 |
3 |
$10 |
$34 |
$10 |
|
E. Donnelly |
8 |
8 |
8 |
8 |
8 |
2 |
12 |
37 |
15 |
|
K. Renn |
9 |
10 |
8 |
8 |
9 |
0 |
13 |
58 |
15 |
Employees are paid 11/2 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 8% on the first $100,000 of gross earnings. Gonzalez Company is subject to 5.4% state unemployment taxes and 0.8% federal unemployment taxes on the first $7,000 of gross earnings.
Instructions
(a) Prepare the payroll register for the weekly payroll.
(b) Prepare the journal entries to record the payroll and Gonzalez’s payroll tax expense.