Alpine Company pays its employees time-and-a-half for hours worked in excess of 40 per week. The information available from time cards and employees individual earnings records for the pay period ended October 14 is shown in the following chart:
Daily Time Earnings at End of Previous Pay Income Tax MT W T FRate Allowances Name Bardin, I Caris, A Drew, W Garen, S North, O. Ovid, N Ross, 1 Springer, O Weck 43,627.00 88 44,340.00 88 8 8 88 21.60 43,845.008101088 0 2150 105,900.0088 8 8849.00 43,875.0088 8 52140 0,150.00888880 21.50 6,430.00 | 8 81 8 20.50 8 8 2 21.30
Taxable earnings for Social Security are based on the first $106,800. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000.
Required
1. Complete the payroll register using the wage-bracket income tax withholding table in Figure 3 (pages 302303). The Social Security tax rate is 4.2 percent, and the Medicare tax rate is 1.45 percent. Assume that all employees are married. Garens federal income tax is $238.06. In the payroll register, begin payroll checks with No. 3945.
2. Prepare a general journal entry to record the payroll. The firms general ledger contains a Wages Expense account and a Wages Payable account.
3. Assuming that the firm has transferred funds from its regular bank account to its special payroll bank account and that this entry has been made, prepare a general journal entry to record the payment of wages.
