APPENDIX H
Payroll Accounting
ASSIGNMENT CLASSIFICATION TABLE
Learning Objectives
Questions
Brief
Exercises
Exercises
1. Compute and record the payroll
for a pay period.
1, 2, 3, 5, 6, 7,
8
1, 2
1, 2, 3, 4
2. Describe and record
employer payroll taxes.
2, 3, 4, 8
3
3, 5
1A, 2A, 3A
3. Discuss the objectives of internal
control for payroll.
9, 10
4
ASSIGNMENT CHARACTERISTICS TABLE
Problem
Number
Description
Difficulty
Level
Time
Allotted (min.)
Prepare payroll register and payroll entries.
Journalize payroll transactions and adjusting entries.
W-2 data.
ANSWERS TO QUESTIONS
7. The employee earnings record is used in: (1) determining when an employee has earned
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE H-1
Gross earnings:
BRIEF EXERCISE H-2
Jan. 15 Salaries and Wages Expense …………………. 760.00
BRIEF EXERCISE H-3
Jan. 31 Payroll Tax Expense ………………………………. 11,080
BRIEF EXERCISE H-4
SOLUTIONS TO EXERCISES
EXERCISE H-1
(a) 1. Regular 40 X $16.00 = $640.00
(b) Salaries and Wages Expense …………………………….. 688.00
EXERCISE H-2
EXERCISE H-2 (Continued)
EXERCISE H-3
(a) See next page.
EXERCISE H-3 (Continued)
(a) RAMIREZ COMPANY
Payroll Register
For the Week Ending January 31
Earnings
Deductions
Total
Gross
FICA
Federal
Health
Net
560.00
46.05
108.05
493.95
EXERCISE H-3 (Continued)
(b) Jan. 31 Payroll Tax Expense ………………………….. 260.38
EXERCISE H-4
(b) Feb. 28 Salaries and Wages Expense ………… 10,000
EXERCISE H-5
(a) FICA tax ($770,000 X 6.2%) + ($850,000 X 1.45%) … $60,065
PROBLEM H–1A
(a) MANN HARDWARD STORE
Payroll Register
For the Week Ended March 15, 2017
Earnings
Deductions
Employee
Hours
Regular
Over-
time
Gross
Pay
FICA
Fed.
State
U.F.
Total
Net Pay
SOLUTIONS TO PROBLEMS
Totals
193.00
75.69
483.69
PROBLEM H-1A (Continued)
(b) Mar. 15 Salaries and Wages Expense …………. 2,523.00
FICA Taxes Payable ……………….. 193.00
(c) Mar. 16 Salaries and Wages Payable ………….. 2,039.31
Cash ……………………………………… 2,039.31
PROBLEM H-2A
(a) Jan. 10 Union Dues Payable …………………. 870.00
Cash …………………………………. 870.00
31 Salaries and Wages Expense …….. 58,000.00
PROBLEM H-2A (Continued)
(b) Jan. 31 Payroll Tax Expense ……………………… 8,033.00
PROBLEM H-3A
(a) Salaries and Wages Expense …………………………. 570,000
(b) Payroll Tax Expense ………………………………………. 43,100
FICA Taxes Payable ………………………………… 38,645