PROBLEM 10.1B
1.
HOURS
WORKED
48
Gross Pay $660.40
Less:
Social Security Tax 40.94
2.
POST.
REF.
6 6
OVERTIME
EARNINGS
$152.40
GROSS
EARNINGS
$660.40
REGULAR
TIME
EARNINGS
REGULAR
HOURS,
HOURLY RATE
$508.00
EMPLOYEE
NO.
$12.70Jacob Sandoval
CREDITDATE DESCRIPTION DEBIT
GENERAL JOURNAL 18 PAGE
PROBLEM 10.1B (continued)
Analyze: Jacob earned overtime pay of $2,244.40, calculated as follows:
Cumulative earnings, prior to December 31 payroll $28,000.00
PROBLEM 10.2B
PAYROLL REGISTER WEEK BEGINNING
Barbara Brooks 3 M 44 1 7 9 00 47 $12.75 5 1 0 00 1 3 3 91 6 4 3 91 44 8 2 2 91
NO. OF
HRS. RATE
EARNINGS
CUMULATIVE
EARNINGS
REGULAR
TIME
EARNINGS
OVERTIME
EARNINGS
GROSS
AMOUNT
December 25, 2013
NAME
NO. OF
ALLOW.
MARITAL
STATUS
CUMULATIVE
EARNINGS
PROBLEM 10.2B (continued)
AND ENDING PAID
CHECK
NO.
6 4 3 91 6 4 3 91 3 9 92 9 34 3 3 00 5 6 1 65 6 4 3 91
December 31, 2013December 31, 2013
TAXABLE WAGES DEDUCTIONS DISTRIBUTION
INCOME
TAX
NET
AMOUNT
SOCIAL
SECURITY MEDICARE FUTA
OFFICE
WAGES
WAGES
EXPENSE
SOCIAL
SECURITY MEDICARE
PROBLEM 10.2B (continued)
POST.
REF.
1 2013 1
2 Dec. 31 3 7 3 2 95 2
3231 44 3
18
DATE DESCRIPTION DEBIT CREDIT
GENERAL JOURNAL PAGE
Wages Expense
Social Security Tax Payable
PROBLEM 10.3B
PAYROLL REGISTER WEEK BEGINNING
Kathryn Allen 3 M 26 5 6 5 00 43 10.50 4 2 0 00 4 7 25 4 6 7 25 27 0 3 2 25
CUMULATIVE
EARNINGS
REGULAR
TIME
EARNINGS
OVERTIME
EARNINGS
GROSS
AMOUNT
November 6, 2013
NAME
NO. OF
ALLOW.
MARITAL
STATUS
CUMULATIVE
EARNINGS
N
O. OF
HRS. RATE
EARNINGS
PROBLEM 10.3B (continued)
AND ENDING PAID
CHECK
NO.
4 6 7 25 4 6 7 25 2 8 97 6 78 1 3 00 4 1 8 50 4 6 7 25
TAXABLE WAGES DEDUCTIONS DISTRIBUTION
MEDICARE
SOCIAL
SECURITY MEDICARE FUTA
SOCIAL
SECURITY
INCOME
TAX
NET
AMOUNT
November 12, 2013 November 12, 2013
OFFICE
WAGES
CONSULTING
WAGES
PROBLEM 10.3B (continued)
POST.
REF.
1 2013 1
2 Nov. 12 8 3 6 25 2
32772283
422374 4
9 9
10 15 2 8 3 8 46 10
11 Cash 283846 11
12 12
13 13
14 14
Analyze: Total deductions of $770.07 were taken from employee paychecks for the period
ended November 12.
Wages Payable
Paid payroll
Office Wages
Social Security Tax Payable
Consulting Wages
32
DATE DESCRIPTION DEBIT CREDIT
PAGE
GENERAL JOURNAL
PROBLEM 10.4B
NET PAY
$12,629.00
$261.00
MEDICARE
CUMULATIVE
EARNINGS
EMPLOYEE
INCOME TAX
WITHHOLDING
$5,110
SOCIAL
SECURITYEMPLOYEE NAME.
MONTHLY
PAY
Tony Constantino $180,000 $18,000
CRITICAL THINKING PROBLEM 10.1
MONTHLY
PAY NET PAY
EMPLOYEE
INCOME
TAX WITH
HOLDING
MEDICARE
SOCIAL
SECURITY
EMPLOYEE NAME
CUMULATIVE
EARNINGS
1. Some of the weaknesses in Tito’s Tacos payroll system include:
a. Managers are able to add new employees to the payroll without written authorization or
verification. There is no check on the qualifications of employees hired and managers
2. Since there are no checks on who the managers hire, it would be possible for a manager to
3. To prevent fictitious employees from being placed on the payroll:
a. New employees should not be added to the payroll without written authorization from
SOLUTIONS TO BUSINESS CONNECTIONS
Managerial Focus:
2. Paying by check would eliminate security risk and reduce work involved in preparing pay envelopes.
3. Various federal, state, and local payroll laws require that detailed payroll records be
4. Used by management to see that operations meet previously established goals and that
related outlays for wages are within previously established limits.
2. Increased by $134 million.
Teamwork:
Employee signs the time card and gives it to the manager. The manager approves the hours and gives it to the
p
ayroll clerk. The payroll clerk runs the payroll and prints the checks. The treasurer signs the checks and gives
them back to the payroll clerk who gives them to the manager. The controller enters any necessary adjusting
entry. The manager gives the check to the employee.
Experience necessary is 3 out of 5 years preceding the date of the exam. Exam is offered in April and October
at several testing sites. The fee for the CPP exam for the period September 11, 2010 to October 9, 2011 is
$360. Testing includes: Core Payroll Concepts (27.5%), Compliance (23%), Principles of Paycheck
Calculations (20%), Payroll Process and Systems (8.5%), Management and Administration (15%) and
SOLUTIONS TO PRACTICE TEST
Part A True-False
1. FALSE
Part B Matching
1. a