FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Dish Pan Company has 4 employees.  Information about the third week in November payroll follows:NameHours WorkedPay RateFederal Income
Tax WithheldAnnual Earnings
Prior to this checkRichards, B.40$75 per hour$300$138,000Matthews, M.42$80 per hour$320$140,000Ramon, C.44$82 per hour$355$0Wong, S.46$90 per hour$372$151,000Additional information is as follows:The state income tax rate is 4%.  Employees' federal income tax withholdings depend on various factors, and the amounts are as indicated in the above table.Overtime is paid at 150% (time and a half) of the normal hourly rate.Assume that gross pay is subject to social security taxes at a 6.5% rate, on an annual base of $142,800.  Assume that Medicare/Medicaid taxes are 1.45% of gross earnings.  These taxes are matched by the employer.  Dish Pan has 100% participation in a $10 per paycheck employee charitable contribution program.  These contributions are withheld from weekly pay.Dish Pan's payroll is subject to federal (0.6%) and state (1.5%) unemployment taxes on each employee's gross pay, up to $7,000 per year.  All employees had earned in excess of $7,000 in the months leading up to November, with the exception of Carlita Ramon.  This was Carlita's first week with the company.Dish Pan employees are expected to wear company unifroms. Each employee has $15 taken from their paycheck each week to cover the cost of the uniforms.(a)Complete the payroll register on the accompanying blank worksheet.(b)Prepare journal entries for Dish Pan's payroll and the related payroll expenses. The dates and memo entries are already provided.

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