Task: Prepare payroll register and record payroll and payroll tax expense.
Question: Canseco Company has the following data for the weekly payroll ending January 31.
|
Hours
|
Hourly Rate
|
|
M
|
T
|
W
|
T
|
F
|
S
|
|
M. Hindi
|
8
|
8
|
9
|
8
|
10
|
3
|
|
E. Benson
|
8
|
8
|
8
|
8
|
8
|
2
|
|
K. Estes
|
9
|
10
|
8
|
8
|
9
|
0
|
|
Federal Income Tax Withholding
|
Health Insurance
|
|
|
|
$11
|
$34
|
$10
|
|
|
13
|
37
|
15
|
|
|
14
|
58
|
15
|
|
Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 8% on the first $87,900 of gross earnings. Canseco Company is subject to 5.4% state unemployment taxes on the first $9,800 and 0.8% federal unemployment taxes on the first $7,000 of gross earnings.
Instructions:
1. Prepare the payroll register for the weekly payroll.
2. Prepare the journal entries to record the payroll and Canseco's payroll tax expense.