Reference no: EM13531019

Stine Hardware has four employees who are paid on an hourly basis plus time and- a half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2012, are presented below.

			Federal
	Hours	Hourly	Income Tax	United
Employee	Worked	Rate	Withholdings	Fund
Joe Feldon	40	$14.00	$ ?	$5.00
Mary Norten	42	13	?	5
Andy Renfro	44	13	60	8
Kim Cheng	46	13	51	5

Feldon and Norten are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 8%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%. The first three employees are sales clerks (store wages expense). The fourth employee performs administrative duties (office wages expense).

Instructions

(a) Prepare a payroll register for the weekly payroll. (Use the wage-bracket withholding table in the text for federal income tax withholdings.)

(b) Journalize the payroll on March 15, 2012, and the accrual of employer payroll taxes.

(c) Journalize the payment of the payroll on March 16, 2012.

(d) Journalize the deposit in a Federal Reserve bank on March 31, 2012, of the FICA and federal income taxes payable to the government.