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College Accounting, Chapters 1-27 22nd Edition

College Accounting, Chapters 1-27 (22nd Edition)

Book Edition22nd Edition
Author(s)Heintz, Parry
End of Chapter
Self-Study Demonstration Problem
Self-Study Self-Study Test Questions True/False
Self-Study Self-Study Test Questions Multiple Choice
Self-Study Self-Study Test Questions Checkpoint Exercises
Applying Your Knowledge Series A Problems
Applying Your Knowledge - Series B Problems
Applying Your Knowledge - Managing Your Writing
Applying Your Knowledge Ethics Case
Challenge Problem
Chapter 8, End of Chapter, Self-Study Demonstration Problem, Exercise 1
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Carole Vohsen operates a pet grooming salon called Canine Coiffures. She has five employees, all of whom are paid on a weekly basis. Canine Coiffures uses a payroll register, individual employee earnings records, a journal, and a general ledger.


The payroll data for each employee for the week ended January 21, 20--, are given below. Employees are paid 1½ times the regular rate for work over 40 hours a week. 

NameEmployee No.No. of AllowancesMarital StatusTotal Hours Worked Jan. 15-21RateTotal Earnings Jan. 1-14
DeNourie, Katie12S44$11.50$1,058.00
Garriott, Pete21M4012.001,032.00
Martinez, Sheila33M3912.50987.50
Parker, Nancy42M4211.00957.00
Shapiro, John52S4011.50931.50

 Sheila Martinez is the manager of the Shampooing Department. Her Social Security number is 500-88-4189, and she was born April 12, 1969. She lives at 46 Darling Crossing, Norwich, CT, 06360. Martinez was hired September 1 of last year.


Canine Coiffures uses a federal income tax withholding table. A portion of this weekly table is provided in Figure 8-4. Social Security tax is withheld at the rate of 6.2% of the first $118,500 earned. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Garriott and Parker each have $14 and DeNourie and Martinez each have $4 withheld for health insurance. DeNourie, Martinez, and Shapiro each have $15 withheld to be invested in the groomers' credit union. Garriott and Shapiro each have $18.75 withheld under a savings bond purchase plan.


Canine Coiffures' payroll is met by drawing checks on its regular bank account. This week, the checks were issued in sequence, beginning with No. 811.

Prepare a payroll register for Canine Coiffures for the week ended January 21, 20--. (In the Taxable Earnings/Unemployment Compensation column, enter the same amounts as in the Social Security column.) Total the amount columns, verify the totals, and rule with single and double lines.

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