PROBLEM H-2A
(a) Jan. 10 Union Dues Payable …………………. 250.00
12 FICA Taxes Payable ………………….. 662.20
Federal Income Taxes Payable ….. 1,254.60
15 U.S. Savings Bonds Payable ……… 350.00
17 State Income Taxes Payable ……… 102.15
20 Federal Unemployment Taxes
Payable ………………………………… 312.00
State Unemployment Taxes
31 Salaries and Wages Expense …….. 46,200.00
FICA Taxes Payable …………… 3,534.30
Federal Income Taxes
31 Salaries and Wages Payable ……… 38,335.70
PROBLEM H-2A (Continued)
(b) Jan. 31 Payroll Tax Expense ……………………… 6,398.70
FICA Taxes Payable
($46,200* X 7.65%) …………….. 3,534.30
Federal Unemployment Taxes
PROBLEM H-3A
(a) Salaries and Wages Expense ………………………….. 520,000
FICA Taxes Payable …………………………………. 35,440
Federal Income Taxes Payable …………………. 153,000
(b) Payroll Tax Expense ……………………………………….. 39,070
FICA Taxes Payable …………………………………. 35,440*
Federal Unemployment Taxes Payable
(c)
Employee
Wages,
Tips, Other
Compensation
Federal
Income
Tax
Withheld
State
Income
Tax
Withheld
FICA Tax
Withheld
S. Banks
R. Santo
$56,000
27,000
$20,500
11,000
$1,456 (1)
702 (2)
$4,284
2,066
(1) $56,000 X 2.6%.
(2) $27,000 X 2.6%.
PROBLEM H-4A
(a)
Weaknesses
(b)
Recommended Procedures
1.
Hours worked are marked
on time card by
employee.
Time cards should be
punched by a time clock and
the punching of the clock by
employees should be
supervised so that one
employee cannot punch
more than one card.
Employees give the
approved cards to payroll.
The manager should deliver
the cards to payroll in order
to prevent possible altera-
tions by employees during
delivery.
2.
Department manager
indicates the rates of pay.
Rates of pay should be
authorized in writing by
the human resources
department.
The department manager
pays the employees.
The treasurer’s department
should pay employees.
Payment is in cash.
Payment should be made by
check.
3.
Manager prepares payroll
register which is sent to
the payroll department.
The payroll department
should prepare the payroll
register on the basis of the
clock cards approved by the
manager.
A payroll supervisor pays
each employee by check.
Payment to employees
should be made by the
treasurer’s department.
PROBLEM H-1B
H-15 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
(a) FRANK’S HARDWARE
Payroll Register
For the Week Ending March 15, 2014
Earnings
Deductions
Employee
Hours
Regular
Over-
time
Gross
Pay
FICA
Fed.
State
U.F.
Total
Net Pay
K. Ludwick
E. Buckner
R. Gomez
H. Lankford
Totals
40
42
44
48
600.00
520.00
520.00
520.00
2,160.00
0
39.00
78.00
156.00
273.00
600.00
559.00
598.00
676.00
2,433.00
45.90
42.76
45.75
51.71
186.12
72.00
41.00
60.00
67.00
240.00
27.00
25.16
26.91
30.42
109.49
5.00
5.00
8.00
5.00
23.00
149.90
113.92
140.66
154.13
558.61
450.10
445.08
457.34
521.87
1,874.39
PROBLEM H-1B (Continued)
(b) Mar. 15 Salaries and Wages Expense …………. 2,433.00
FICA Taxes Payable ……………….. 186.12
Federal Income Taxes
Payable ………………………………. 240.00
15 Payroll Tax Expense ……………………… 336.96
FICA Taxes Payable
($2,433 X 7.65%) …………………. 186.12
(c) Mar. 16 Salaries and Wages Payable ………….. 1,874.39
(d) Mar. 31 FICA Taxes Payable
($186.12 + $186.12) …………………….. 372.24
PROBLEM H-2B
(a) Jan. 10 Union Dues Payable …………………. 740.00
Cash …………………………………. 740.00
12 FICA Taxes Payable ………………….. 760.00
Federal Income Taxes Payable ….. 1,204.60
15 U.S. Savings Bonds Payable ……… 360.00
17 State Income Taxes Payable ……… 108.95
Cash …………………………………. 108.95
20 Federal Unemployment Taxes
Payable ………………………………… 288.95
State Unemployment Taxes
31 Salaries and Wages Expense …….. 50,600.00
FICA Taxes Payable …………… 3,871.00
Federal Income Taxes
Payable …………………………. 414.00
United Fund Contributions
Payable …………………………. 1,888.00
31 Salaries and Wages Payable ……… 42,069.00
PROBLEM H-2B (Continued)
(b) 1. Jan. 31 Payroll Tax Expense……………….. 7,008.10
FICA Taxes Payable
($50,600 X 7.65%) ………………. 3,870.90
Federal Unemployment Taxes
PROBLEM H-3B
(a) Salaries and Wages Expense ………………………….. 550,000
FICA Taxes Payable …………………………………. 37,983
Federal Income Taxes Payable …………………. 168,000
(b) Payroll Tax Expense ……………………………………….. 42,108
FICA Taxes Payable …………………………………. 37,983
Federal Unemployment Taxes Payable
(c)
Employee
Wages,
Tips, Other
Compensation
Federal
Income
Tax
Withheld
State
Income
Tax
Withheld
FICA
Wages
FICA Tax
Withheld
Jose Chavez
Nina Kremer
$59,000
26,000
$19,500
9,200
$1,888 (1)
832 (2)
$59,000
26,000
$4,514
1,989
(1) $59,000 X 3.2%.
(2) $26,000 X 3.2%.