Chapter
10
Skyline College
10-1
Who Is an Employee?
An employee is a person who is hired by and
works under the direction of the employer.
Works
Uses
under the control of the employer
equipment provided by the employer
Works
hours that are set by the employer
10-2
An independent contractor is one who is
paid by a company to carry out a specific
task or job but is not under the direct
supervision or control of the company.

Does not work under the direct supervision or control of the company

Furnishes his or her own tools or equipment

Sets his or her own working hours

No withholding for independent contractors

No payroll tax for independent contractors
10-3
How do employees differ from
independent contractors?
Employee
Independent Contractor
Works under the control and direction
of the employer
Does not work under the direct
supervision or control of the company
Uses tools or equipment provided by
the employer
Furnishes his or her own tools
or equipment
Works certain hours that are set by
the employer
Sets his or her own working hours
10-4
The Fair Labor Standards Act
of 1938

Also referred to as the Wage and Hour Law

Applies only to firms engaged directly or indirectly in interstate commerce

Sets a minimum hourly rate of pay and maximum hours of work per week to
be performed at the regular rate of pay
Employees who work beyond 40 hours a week are entitled to
“time and a half.”
10-5
Time and a half
Time and a half is the rate of pay for an
employee’s work in excess of 40 hours a
week.
It is one and one-half times the regular
hourly rate of pay.
10-6
Social Security Tax
Social security tax is a tax imposed by
the Federal Insurance Contributions Act
(FICA) and collected on employee
earnings to provide retirement and
disability benefits.
10-7
Social Security Tax
As of 2005
The amount of social security tax is determined by:

rate
 earnings up to a calendar year earnings base

6.2%
 $90,000
The rate (6.2 percent) has remained constant in recent years.
The earnings base has increased each year.
10-8
Medicare Tax
Medicare tax is a tax on employees and
employers to provide medical care for
the employee and the employee’s
spouse after each has reached age 65.
10-9
Medicare Tax
As of 2005
The amount of Medicare tax is determined by:


rate
 earnings
1.45%
 total earnings
The rate (1.45%) has remained constant in recent years.
The Medicare tax does not have an earnings base limit.
10-10
Gross
Wages
Employee Earnings
social security tax (6.2% up
to an earnings base limit)
Medicare tax (1.45%)
10-11
Let’s assume an employee earns $100,000 in the calendar year.
FICA
Tax
Employee (withheld) 6.2% X $90,000 = $5,580.00
Medicare
Tax
Employee (withheld) 1.45% X $100,000 = $1,450.00
Social Security Tax and Medicare Tax
$5,580.00
$5,580.00
Social Security Tax
Tax payable
Medicare Tax
$3,100.00
$50,000 X 6.2% = $3,100.00
$90,000 X 6.2% = $5,580.00
Earnings 
Employee 1
$50,000
Employee 2
$90,000
Employee 3
$100,000
$90,000 X 6.2% = $5,580.00
Tax payable
Social Security Tax and Medicare Tax
$5,580.00
$5,580.00
Social Security Tax
Medicare Tax
$3,100.00
$50,000 X 1.45% = $725.00
$1,450.00
$1,305.00
$725.00
$90,000 X 1.45% = $1,305.00
Earnings 
$100,000 X 1.45% = $1,450.00
Employee 1
$50,000
Employee 2
$90,000
Employee 3
$100,000
Federal Income Tax
Employers are required to withhold an estimated amount
of federal income tax from the employee’s earnings.
10-15
Gross
Wages
Employee Earnings
federal income tax
social security tax (6.2% up
to an earnings base limit)
Medicare tax (1.45%)
10-16
State and Local Taxes

Most states, and many local governments, may require
employers to withhold income taxes from employees’
earnings to prepay the employees’ state and local income
taxes.

The rules are generally almost identical to those governing
federal income tax withholding.
10-17
Employer’s Payroll Taxes
and Insurance Costs

Employers withhold social security and Medicare taxes from
employees’ earnings.

In addition, employers pay social security and Medicare taxes
on their employees’ earnings.

Employers are also required to pay:

Federal unemployment tax

State unemployment tax

Workers’ compensation insurance
10-18
The employer matches the social security tax withheld
from the employee’s earnings.
Employee Earnings
federal income tax
social security tax (6.2% up
to an earnings base limit)
Medicare tax (1.45%)
10-19
The employer matches the Medicare tax withheld
from the employee’s earnings.
Employee Earnings
federal income tax
social security tax (6.2% up
to an earnings base limit)
Medicare tax (1.45%)
10-20
Let’s assume an employee earns $100,000 in the calendar year.
FICA
Tax
Employee (withheld) 6.2% X $90,000 = $5,580.00
Employer
Total
6.2% X $90,000 = $5,580.00
12.4 %
Federal Unemployment Tax
FUTA
Federal unemployment taxes (FUTA) are
taxes levied by the federal government
against employers to benefit unemployed
workers.
10-22
State Unemployment Tax
SUTA
State unemployment taxes (SUTA) are
taxes levied by the state government
against employers to benefit unemployed
workers.
10-23
Unemployment Rate Taxes

The FUTA and SUTA tax rates are applied to FUTA
wages:



The federal tax rate is 6.2 percent.
This can be reduced by the state tax rate (5.4 percent for many
states).
This text assumes that the taxable earnings base per
employee is $7000 per year.
10-24
The SUTA-FUTA Connection
SUTA tax rate
FUTA tax rate
(Less) SUTA tax rate
5.0%
6.2%
4.8%
6.2%
(5.0)
5.4%
6.2%
(4.8)
(5.4)
Net FUTA tax rate
1.2
1.4
0.8
Total taxes
6.2%
6.2%
6.2%
10-25
Gross
Wages
unemployment taxes (6.2% up to
a taxable earnings base)
Employee Earnings
federal income tax
social security tax (6.2% up
to an earnings base limit)
Medicare tax (1.45%)
10-26
Workers’ Compensation Insurance
Workers’ compensation insurance is the
insurance that protects employees against
losses from job-related injuries or illnesses,
or compensates their families if death
occurs in the course of employment.
10-27
Employee Records
Required by Law
Federal laws require that certain payroll records be maintained.
For each employee the employer must keep a record of:
Employee’s name, address, social security number, and
date of birth
 Hours worked each day and week, and wages paid at the
regular and overtime rates (certain exceptions exist for
employees who earn salaries)
 Cumulative wages paid during the year
 Amount of income tax, social security tax, and Medicare
tax withheld for each pay period
 Proof that the employee is a United States citizen or has
a valid work permit

10-28
Meet Kent Furniture and
Novelty Co.

Kent Furniture and Novelty Co. imports furniture and novelty items to
sell over the Internet.

The firm is a sole proprietorship owned and managed by Sarah
Kent.

Kent Furniture and Novelty Co. has five employees.

Payday is each Monday.
10-29
Computing Total Earnings of Employees
The first step in preparing payroll is to compute the
gross wages or salary for each employee. There are
several ways to compute earnings.




Hourly rate basis
Salary basis
Commission basis
Piece-rate basis
10-30
Hourly rate basis is a method of
paying employees according to a
stated rate per hour.
Commission basis is a method of
paying employees according to a
percentage of net sales.
10-31
Piece-rate basis is a method of
paying employees according to the
number of units produced.
Salary basis is a method of paying
employees according to an agreedupon amount for each week, month
or other period.
10-32
Determining Pay for Hourly
Employees
Two pieces of data are needed to compute gross pay for hourly
rate basis employees:
number of hours worked during the payroll period
 rate of pay

10-33
Hours Worked

Many businesses use time clocks for hourly employees.

Each employee has a time card and inserts it in the time
clock to record the times of arrival and departure.

The payroll clerk collects the cards at the end of the week.
10-34
Computing Gross Pay
The gross pay for hourly employees for the week ended
January 6 is determined as follows:
Total hours
Rate of pay
Gross pay
Alicia Martinez
40 hours
X
$ 10.00
=
$400.00
Jorge Rodriguez
40 hours
X
$
9.50
=
$380.00
George Dunlap
40 hours
X
$
9.00
=
$360.00
10-35
Overtime
George Dunlap earns $9.00 per hour. He worked 45 hours. He is paid
40 hours regular rate of pay and 5 hours at time and a half.
Therefore, Dunlap’s gross pay adds up to:
Regular earnings:
40 hours X
$ 9.00
=
$360.00
Overtime earnings:
5 hours X
$13.50
=
$ 67.50
Gross Pay
$427.50
10-36
Withholdings for Hourly Employees
Required by Law
Recall that federal law requires employers to make
three deductions from employees’ gross pay:

FICA (social security) tax

Medicare tax

Federal income tax withholding
10-37
Tax-exempt Wages

Earnings in excess of the base amount ($90,000 as of 2005) are
not subject to FICA withholding.

If an employee works for more than one employer during the
year, the FICA tax is deducted and matched by each employer.

When the employee files a federal income tax return, any excess
FICA tax withheld from the employee’s earnings is refunded by
the government or is applied to payment of the employee’s
federal income taxes.
10-38
Social Security Tax
To determine the amount of social security tax to withhold,
multiply the taxable wages by the social security tax rate
and round off to the nearest cent.
Employee
Cindy Taylor
Jorge Rodriguez
George Dunlap
Cecilia Wu
Gross pay
$400.00
380.00
427.50
560.00
Total social security tax
Tax rate
X
X
X
X
6.2%
6.2%
6.2%
6.2%
Tax
=
=
=
=
$24.80
23.56
26.51
34.72
$109.59
10-39
Medicare Tax
To compute the Medicare tax to withhold from the
employee’s paycheck, multiply the wages by the Medicare
tax rate, 1.45 percent.
Employee
Alicia Martinez
Jorge Rodriguez
George Dunlap
Cecilia Wu
Gross pay
$400.00
380.00
427.50
560.00
Total Medicare tax
Tax rate
X
X
X
X
1.45%
1.45%
1.45%
1.45%
Tax
=
=
=
=
$
$
$
$
5.80
5.51
6.19
8.12
$25.62
10-40
The amount of federal income tax to withhold from
an employee’s earnings depends on:

Earnings during the pay period

Length of the pay period
Employee’s
instructions:
Marital status
Number of withholding allowances
10-41
Withholding Allowances
In the simplest circumstances, a taxpayer claims a
withholding allowance for:



The taxpayer
A spouse who does not also claim an allowance
Each dependent for whom the taxpayer provides more than
half the support during the year
As the number of withholding allowances increases, the
amount of federal income tax withheld decreases.
10-42
The Employee’s Withholding
Allowance Certificate, Form W-4 is a
form used to claim exemption
(withholding) allowances.
The wage-bracket table method is a
simple method to determine the
amount of federal income tax to be
withheld using tables provided by
the government.
10-43
Computing Federal Income
Tax Withholding

The wage-bracket table method is the most
common way to compute the federal income tax
withholding.

The wage-bracket tables are in Publication 15,
Circular E or online on www.IRS.gov
10-44
Wage-Bracket Table Method
Use the following steps to determine the amount
to withhold:
1. Choose the table for the pay period and the
employee’s marital status.
2. Find the row in the table that matches the wages
earned. Find the column that matches the number of
withholding allowances claimed on Form W-4. The
income tax to withhold is the intersection of the row
and the column.
10-45
Cecilia Wu is married, claims two withholding
allowances, and earned $560 for the week.
MARRIED Persons—WEEKLY Payroll Period
If the wages are--At least
520
530
540
550
560
And the number of withholding allowances claimed is-0
1
2
3
4
5
6
7
8
9
10
But less
The amount of income tax to be withheld shall be-than
The tax to withhold is $30; this is
530 42 33 22 19 10
4
0
0
0
0
0
where the row and
column
intersect.
540 43 34 23 20 11
5
0
0
0
0
0
550 45 36 24 21 12
6
0
0
0
0
0
560 46 37 29 22 16 10
4
0
0
0
0
570 48 39 30 23 17 11
5
0
0
0
0
1. Go to the table for married persons paid weekly.
2. Find the line covering wages between $560 and $570.
Find the column for two withholding allowances.
10-46
Other Deductions Required by Law

Most states and some local governments require
employers to withhold state and local income taxes
from earnings.

In some states employers are also required to
withhold unemployment tax or disability tax.

The procedures are similar to those for federal
income tax withholding.

Apply the tax rate to the earnings, or use withholding
tables.
10-47
There are many payroll deductions not required by law
but made by agreement between the employee and the
employer.
Some examples are:








Group life insurance
Group medical insurance
Company retirement plans
Bank or credit union savings plans or loan repayments
United States savings bonds purchase plans
Stocks and other investment purchase plans
Employer loan repayments
Union dues
10-48
Determining Pay for Salaried
Employees
A salaried employee earns a specific sum of
money for each payroll period.
Exempt employees are salaried employees
who hold supervisory or managerial
positions who are not subject to the
maximum hour and overtime pay provisions
of the Wage and Hour Law.
10-49
Withholdings for Salaried
Employees Required by Law


The procedures for withholding taxes for salaried
employees is the same as withholding for hourly
employees.
Apply the tax rate to the earnings or use
withholding tables.
10-50
Recording Payroll
Information for Employees
A payroll register is a record of
payroll information for each
employee for the pay period.
10-51
Completing the Payroll Register
PAYROLL REGISTER
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
WEEK BEGINNING
NO. OF
ALLOW.
MARITAL
STATUS
1
1
3
2
1
January 1, 20--
CUMULATIVE
EARNINGS
M
S
S
M
S
NO. OF
HRS.
40
40
45
40
40
(B)
(C)
(D)
RATE
10.00
9.50
9.00
14.00
480.00
(E)
Enter the employee’s name (Column A), number of withholding
allowances and marital status (Column B), and rate of pay
(Column E).
10-52
Completing the Payroll Register
PAYROLL REGISTER
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
WEEK BEGINNING
NO. OF
ALLOW.
MARITAL
STATUS
1
1
3
2
1
January 1, 20--
CUMULATIVE
EARNINGS
M
S
S
M
S
NO. OF
HRS.
40
40
45
40
40
(B)
(C)
(D)
RATE
10.00
9.50
9.00
14.00
480.00
(E)
The Cumulative Earnings column (Column C) shows the total
earnings for the calendar year before the current pay period. Since
this is the first payroll period for the year, there are no cumulative
earnings prior to the current pay period.
10-53
Completing the Payroll Register
PAYROLL REGISTER
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
WEEK BEGINNING
NO. OF
ALLOW.
MARITAL
STATUS
1
1
3
2
1
January 1, 20--
CUMULATIVE
EARNINGS
M
S
S
M
S
NO. OF
HRS.
40
40
45
40
40
(B)
(C)
(D)
RATE
10.00
9.50
9.00
14.00
480.00
(E)
In Column D enter the total number of hours worked in the current
period. This data comes from the weekly time sheets.
Note that all employees were paid for eight hours on January 1, a
holiday.
10-54
Completing the Payroll Register
PAYROLL REGISTER
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
REGULAR
400.00
380.00
360.00
560.00
480.00
2,180.00
(F)
WEEK BEGINNING
EARNINGS
OVERTIME
67.50
67.50
(G)
January 1, 20-GROSS
AMOUNT
400.00
380.00
427.50
560.00
480.00
2,247.50
CUMULATIVE
EARNINGS
400.00
380.00
427.50
560.00
480.00
2,247.50
(H)
(I)
Using the hours worked and the pay rate, calculate regular pay
(Column F), the overtime pay (Column G), and gross pay (Column
H).
10-55
Completing the Payroll Register
PAYROLL REGISTER
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
REGULAR
400.00
380.00
360.00
560.00
480.00
2,180.00
(F)
WEEK BEGINNING
EARNINGS
OVERTIME
67.50
67.50
(G)
January 1, 20-GROSS
AMOUNT
400.00
380.00
427.50
560.00
480.00
2,247.50
CUMULATIVE
EARNINGS
400.00
380.00
427.50
560.00
480.00
2,247.50
(H)
(I)
Calculate the cumulative earnings after this pay period (Column I).
10-56
Completing the Payroll Register
AND ENDING
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
January 6, 20--
PAID
TAXABLE WAGES
SOCIAL
MEDICARE
SECURITY
400.00
400.00
380.00
380.00
427.50
427.50
560.00
560.00
480.00
480.00
2,247.50
2,247.50
(J)
(K)
FUTA
400.00
380.00
427.50
560.00
480.00
2,247.50
(L)
January 8, 20-DEDUCTIONS
SOCIAL
MEDICARE
SECURITY
24.80
5.80
23.56
5.51
26.51
6.19
34.72
8.12
29.76
6.96
139.35
32.58
(M)
(N)
The Taxable Wages columns shows the earnings subject to taxes for
social security (Column J), Medicare (Column K), and FUTA (Column
L). Only the earnings at or under the earnings limit are included in
these columns.
10-57
Completing the Payroll Register
AND ENDING
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
January 6, 20-SOCIAL
SECURITY
24.80
23.56
26.51
34.72
29.76
139.35
(M)
PAID
DEDUCTIONS
MEDICARE
5.80
5.50
6.19
8.12
6.96
32.58
(N)
INCOME
TAX
19.00
34.00
23.00
30.00
49.00
155.00
(O)
January 8, 20-HEALTH
INSURANCE
40.00
40.00
80.00
(P)
The Deductions columns show the withholding for social security
tax (Column M), Medicare tax (Column N), federal income tax
(Column O), and medical insurance (Column P).
10-58
Completing the Payroll Register
AND ENDING
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
January 6, 20--
PAID
January 8, 20--
DEDUCTIONS
DISTRIBUTION
INCOME
HEALTH
NET
CHECK OFFICE
SHIPPING
TAX
INSURANCE AMOUNT NO.
SALARIES
WAGES
19.00
350.40
1601
400.00
34.00
316.93
1602
380.00
23.00
40.00
331.80
1603
427.50
30.00
40.00
447.16
1604
560.00
49.00
394.28
1605
480.00
155.00
80.00
1,840.57
480.00
1,767.50
(O)
(P)
(Q)
(R)
(S)
(T)
Subtract the deductions (Columns M, N, O, and P) from the gross
earnings (Column H). Enter the results in the Net Amount column
(Column Q). This is the amount paid to each employee.
10-59
Completing the Payroll Register
AND ENDING
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
January 6, 20--
PAID
January 8, 20--
DEDUCTIONS
DISTRIBUTION
INCOME
HEALTH
NET
CHECK OFFICE
SHIPPING
TAX
INSURANCE AMOUNT NO.
SALARIES
WAGES
19.00
350.40
1601
400.00
34.00
316.93
1602
380.00
23.00
40.00
331.80
1603
427.50
30.00
40.00
447.16
1604
560.00
49.00
394.28
1605
480.00
155.00
80.00
1,840.57
480.00
1,767.50
(O)
(P)
(Q)
Enter the check number in Column R.
10-60
(R)
(S)
(T)
Completing the Payroll Register
AND ENDING
NAME
Martinez, Alicia
Rodriguez, Jorge
Dunlap, George
Wu, Cecil
Booker, Cynthia
(A)
January 6, 20--
PAID
January 8, 20--
DEDUCTIONS
DISTRIBUTION
INCOME
HEALTH
NET
CHECK OFFICE
SHIPPING
TAX
INSURANCE AMOUNT NO.
SALARIES
WAGES
19.00
350.40
1601
400.00
34.00
316.93
1602
380.00
23.00
40.00
331.80
1603
427.50
30.00
40.00
447.16
1604
560.00
49.00
394.28
1605
480.00
155.00
80.00
1,840.57
480.00
1,767.50
(O)
(P)
(Q)
(R)
(S)
(T)
The payroll register’s last two columns classify employee earnings
as office salaries (Column S) or shipping wages (Column T).
10-61
The Payroll Register
When the payroll data for all employees has been
entered in the payroll register, total the columns.
10-62
Recording Payroll
Recording payroll information involves two
separate entries:
Record the payroll expense
2. Pay the employees
1.
10-63
AND ENDING
January 6, 20--
PAID
January 8, 20--
DEDUCTIONS
DISTRIBUTION
NAME
INCOME
HEALTH
NET
CHECK OFFICE
SHIPPING
TAX
INSURANCE AMOUNT NO.
SALARIES
WAGES
Martinez, Alicia
19.00
350.40
1725
400.00
Rodriguez, Jorge
34.00
316.93
1726
380.00
Dunlap, George
23.00
40.00
331.80
1727
427.50
Wu, Cecil
30.00
40.00
447.16
1728
560.00
Booker, Cynthia
49.00
394.28
1729
480.00
The information 155.00
in
80.00
1,840.57
480.00
1,767.50
the (A)
register is (O)
(P)
(Q)
(R)
used for recording
GENERAL JOURNAL
the payroll
expense.
DATE
DESCRIPTION
POST.
(S)
(T)
PAGE
DEBIT
1
CREDIT
REF.
20-Jan.
8
Office Salaries Expense
Shipping Wages Expense
Social Security Tax Payable
Medicare Tax Payable
Employee Income Tax Payable
Health Insurance Premiums Payable
Salaries and Wages Payable
Payroll for week ending Jan. 6
480.00
1,767.50
139.35
32.58
155.00
80.00
1,840.57
AND ENDING
January 6, 20--
PAID
January 8, 20--
DEDUCTIONS
MEDICARE
NAME
SOCIAL
INCOME
HEALTH
SECURITY
TAX
INSURANCE
Martinez, Alicia
24.80
5.80
19.00
Rodriguez, JorgeEach23.56
5.50 is credited
34.00
type of deduction
to
Dunlap, George
26.51
6.19
23.00
40.00
a
separate
liability
account.
Wu, Cecil
34.72
8.12
30.00
40.00
Booker, Cynthia
29.76
6.96
49.00
139.35
32.58
155.00
80.00
(A)
(M)
(N)
(O)
GENERAL JOURNAL
A separate liability
account is set up
DATE
DESCRIPTION
POST.
for each
REF.
20-- deduction.
Jan.
8
Office Salaries Expense
Shipping Wages Expense
Social Security Tax Payable
Medicare Tax Payable
Employee Income Tax Payable
Health Insurance Premiums Payable
Salaries and Wages Payable
Payroll for week ending Jan. 6
(P)
PAGE
DEBIT
1
CREDIT
480.00
1,767.50
139.35
32.58
155.00
80.00
1,840.57
AND ENDING
January 6, 20--
PAID
January 8, 20--
DEDUCTIONS
DISTRIBUTION
NAME
INCOME
HEALTH
NET
CHECK OFFICE
SHIPPING
TAX
INSURANCE AMOUNT NO.
SALARIES
WAGES
Martinez, Alicia
19.00
350.40
1601
400.00
Rodriguez, Jorge
34.00
316.93
1602
380.00
Net pay
is
credited
to
the
Dunlap, George
23.00
40.00
331.80
1603
427.50
liability
account,
Salaries
and 40.00
Wu,
Cecil
30.00
447.16
1604
560.00
Cynthia
49.00
394.28
1605
480.00
WagesBooker,
Payable.
155.00
80.00
1,840.57
480.00
1,767.50
(A)
(O)
(P)
(Q)
(R)
(S)
GENERAL JOURNAL
DATE
20-Jan.
DESCRIPTION
8
Office Salaries Expense
Shipping Wages Expense
Social Security Tax Payable
Medicare Tax Payable
Employee Income Tax Payable
Health Insurance Premiums Payable
Salaries and Wages Payable
Payroll for week ending Jan. 6
POST.
REF.
(T)
PAGE
DEBIT
1
CREDIT
480.00
1,767.50
139.35
32.58
155.00
80.00
1,840.57
Paying Employees
Most businesses pay their employees by check or
by direct deposit.
By using these methods, the business avoids the
inconvenience and risk involved in dealing with
currency.
10-67
Wages Paid
On January 8 Kent Furniture and Novelty Co. wrote five checks for
payroll, Check numbers 1601-1605.
GENERAL JOURNAL
DATE
Jan.
DESCRIPTION
8
POST.
REF.
Salaries and Wages Payable
DEBIT
PAGE
1
CREDIT
1,840.57
Cash
1,840.57
To record payment of salaries and
wages for week ended Jan. 6
General Journal Format
10-68