Problem:
Canscco Company has the following data for the weekly payroll ending January 31.
|
|
|
|
Hours
|
|
|
Hourly
|
Federal
laconic Tax
|
Health
|
|
|
M
|
T
|
WT
|
|
F
|
S
|
|
|
Employee
|
Rate
|
Withholding
|
Insurance
|
|
|
M. Hindi
|
8
|
8
|
9
|
8
|
10
|
3
|
511
|
S34
|
$10
|
|
|
E. Benson
|
8
|
8
|
8
|
8
|
8
|
2
|
13
|
37
|
15
|
|
|
K. Estes
|
9
|
10
|
8
|
8
|
9
|
0
|
14
|
58
|
15
|
|
Employees are paid IV2 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
(a) Prepare the payroll register for the weekly payroll.
(b) Prepare the journal entries to record the payroll and Canseco's payroll tax expense.