MASTERY PROBLEM Abigail Trenkamp owns and operates the Trenkamp Collection Agency. Listed below are the name, number of allowances claimed, marital status, information from time cards on hours worked each day, and the hourly rate of each employee. All hours worked in excess of 40 hours for Monday through Friday are paid at 12 times the regular rate. All weekend hours are paid at double the regular rate. Trenkamp uses a weekly federal income tax withholding table (see Figure 8-4 on pages 288 and 289). Social Security tax is withheld at the rate of 6.2% for the first ST10,100 earned. Medicare tax is withheld at 1.45% and state income tax at 3.5%. Each employee has $5 withheld for health insurance. All employees use payroll deduc- tion to the credit union for varying amounts as listed.
MASTERY PROBLEM Abigail Trenkamp owns and operates the Trenkamp Collection Agency. Listed below are the name, number of allowances claimed, marital status, information from time cards on hours worked each day, and the hourly rate of each employee. All hours worked in excess of 40 hours for Monday through Friday are paid at 12 times the regular rate. All weekend hours are paid at double the regular rate. Trenkamp uses a weekly federal income tax withholding table (see Figure 8-4 on pages 288 and 289). Social Security tax is withheld at the rate of 6.2% for the first ST10,100 earned. Medicare tax is withheld at 1.45% and state income tax at 3.5%. Each employee has $5 withheld for health insurance. All employees use payroll deduc- tion to the credit union for varying amounts as listed.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Transcribed Image Text:MASTERY PROBLEM
/ Cr. Cash: $4,301.83
ar Ban Trenkamp owns and operates the Trenkamp Collection Agency. Listed below
are the name, number of allowances claimed, marital status, information from time
cards on hours worked each day, and the hourly rate of each employee. All hours
worked in excess of 40 hours for Monday through Friday are paid at 1½ times the
regular rate. All weekend hours are paid at double the regular rate.
Trenkamp uses a weekly federal income tax withholding table (see Figure 8-4 on
pages 288 and 289). Social Security tax is withheld at the rate of 6.2% for the first
$110,100 earned. Medicare tax is withheld at 1.45% and state income tax at 3.5%.
Each employee has $5 withheld for health insurance, All employees use payroll deduc-
tion to the credit union for varying amounts as listed.
GENERAL LEDGER
Trenkamp Collection Agency
Payroll Information for the Week Ended November 18, 20--
Credit
Total
Hourly
Rate
Earnings
1/1-11/11
Union
Employee
No.
No of
Allow.
Regular Hours Worked
S S M T W T F
Marital
Name
Status
Deposit
$ 24,525
30,480
Berling, James
Merz, Linda
Goetz, Ken
Menick, Judd
Morales, Eva
Heimbrock, Jacob
1
3.
$12
$149.60
9 889 10
888 8 10
4.
15
117.00
3
67 8910
11
91.30
21,500
4
2.
0 0 8 8 9
11
126.50
22,625
8 8
0 0
0 0
5
24,730
109,140
21,425
3
8886
8.
13
117.05
6.
5
888 8
8
34
154.25
Townsley, Sarah
Salzman, Beth
2
4 0
6 6 66
4
9.
83.05
8.
6,635
5,635
21,635
24,115
6 2
8866
6.
11
130.00
Layton, Esther
Thompson, David
Vadillo, Carmen
9.
8 888
8.
11
88.00
10
5
0 2
8 0 4 8889
10 9 7 7 10
11
128.90
11
13
139.11
The Trenkamp Collection Agency follows the practice of drawing a single check
for the net amount of the payroll and depositing the check in a special payroll account
at the bank. Individual checks issued were numbered consecutively, beginning with
No. 331.
REQUIRED
1. Prepare a payroll register for Trenkamp Collection Agency for the week ended
November 18, 20--. (In the Taxable Earnings/Unemployment Compensation
column, enter $365 for Salzman and $440 for Layton. Leave this column blank
for all other employees.) Total the amount columns, verify the totals, and rule
with single and double lines.
2. Assuming that the wages for the week ended November 18 were paid on
November 21, prepare the journal entry for the payment of this payroll.
MMMSMMMMMMS
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