Current Liabilities and Payroll

Using Excel for Payroll

Ankel Footwear employees three salespeople, and pays time-and-a-half for overtime. Weekly paychecks are distributed on th
(Saturday). Ankel withholds income tax (20%), FICA—OASDI (6.2%), and FICA—Medicare (1.45%). Ankel also pays payroll taxes
(1.45%), and state and federal unemployment (5.4% and 0.6% respectively). The payroll data for the three salespeople for the

Straight Beginning
Name Time Hours Cumulative
Worked
Rate Earnings
Jimmy Chew $15.00 46 $420.00
Manny Blanik $17.00 50 $540.00
Alexa King $22.00 38 $480.00

Use the blue shaded areas on the ENTER-ANSWERS tab for inputs.
Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab
amounts as positive values. Do not use a minus sign or parentheses for any values.

Requirements:
1 Complete the Payroll Register for the three employees for the week ended March 31, 2018. Format to two
2 Complete the Payroll Tax Register.
3 Compute the total payroll expense for the week ended March 31. Format to two decimal places.
4 Record the payroll entries Ankel makes for each of the following; use cell references to the tax registers fo
    Wage
a.  Wage expense relatedexpense related
to the three to the three
employees employees
on Saturday, Marchon
31.Saturday, March 31.
b.      taxes
b. Employer payroll Employer payroll
related to thetaxes
threerelated to the
employees three employees
on Saturday, March 31.on Saturday, March 31.
c. Payment of all payroll taxes (employee and employer
c. Payment of all payroll taxes (employee and employer related) on Tuesday, April
       related)
3. on Tuesday, April 3.
d.      Payment
d. Payment of wages of wages
on Tuesday, April 3.on Tuesday, April 3.

Excel Skills:
1 Use cell references, both absolute and relative.
2 Indent the credits in the journal entries using the Increase indent button in the Paragraph Group on the Home Tab.

3 Format dollar amounts to two decimal places.

Saving & Submitting Solution

1 Save file to desktop.
a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS
2 Upload and submit your file to be graded.
a. Navigate back to the activity window - screen where you downloaded the initial spreadsheet
 b. Click Choose button under step 3; locate the file you just saved and click Open
c. Click Upload button under step 3
d. Click Submit button under step 4

Viewing Results
1 Click on Results tab in MyAccountingLab
2 Click on the Assignment you were working on
3 Click on Project link; this will bring up your Score Summary
4 Within Score Summary window, click on Download (upper right) to download the spreadsheet with feedback
aychecks are distributed on the Tuesday following the last day of the week
. Ankel also pays payroll taxes for FICA—OASDI (6.2%), FICA—Medicare
r the three salespeople for the week ended March 31 follows:

aste from the Instructions tab, you will be marked wrong. Enter all

Possible Points
rch 31, 2018. Format to two decimal places. 55
32
wo decimal places. 3
ences to the tax registers for the amounts. 40

aph Group on the Home Tab.

eadsheet with feedback
 Payroll Data
Straight Beginning
Hours
Name Time Cumulative
Worked
Rate Earnings
Jimmy Chew $15.00 46 $420.00
Manny Blanik $17.00 50 $540.00
Alexa King $22.00 38 $480.00

Complete the Payroll Register for the three employees for the week ended March 31, 2018. N
Requirement 1 **For columns C - E, reference cells in Payroll Data table; in all other columns, reference cells
(Always use cell references and formulas where appropriate to receive full credit. If you copy
not use a minus sign or parentheses for any values.)

Pay
Earnings

Employee Name Beginning Hours

Cumulative Earnings Pay Rate
Regular Pay Overtime Pay
Worked

Jimmy Chew $420.00 $15.00 46 $600.00 $135.00

Manny Blanik $540.00 $17.00 50 $680.00 $225.00
Alexa King $480.00 $22.00 38 $836.00
Total $1,440.00 134 $2,116.00 $390.00

Complete the Payroll Tax Register for the week ended March 31, 2018.
Requirement 2 **For columns C & D, reference cells in Payroll Register table; in all other columns, reference
(Always use cell references and formulas where appropriate to receive full credit. If you copy
not use a minus sign or parentheses for any values.)

Payroll Tax Register

Earnings Employer Payroll T
Current Ending OASDI Medicare
Employee Name Beginning
Period Cumulative
Cumulative Earnings
Earnings Earnings 6.2% 1.45%
Jimmy Chew $420.00 $735.00 $1,155.00 $45.57 $10.66
Manny Blanik $540.00 $935.00 $1,475.00 $57.97 $13.56
Alexa King $480.00 $836.00 $1,316.00 $51.83 $12.12
Total $1,440.00 $2,506.00 $3,946.00 $155.37 $36.34

Requirement 3 Compute the total payroll expense for the week ended March 31.
(Always use cell references and formulas where appropriate to receive full credit. If you copy
not use a minus sign or parentheses for any values.)
 Description Amount
Total Gross Pay $2,506.00
Payroll Tax Expense $342.07
Total $2,848.07

HINTS
1. Use the function =SUM() to calculate totals in all three tables.
Cell | Hint:
F17:F19 | Consider a 40-hour regular working week. Use the actual amount of hours worked if it's less than the regular amoun

G17:G19 | Use the function =IF( ) to calculate the overtime pay for each employee. LOGICAL_TEST argument should contain a
comparison between the actual amount of hours worked and the regular amount. In VALUE_IF_TRUE argument, u
coefficient to account for time-and-a-half pay for overtime. Enter zero in VALUE_IF_FALSE argument.
M17:M19 | Enter zero into appropriate cells if there is no other withholdings. Do not use the equals sign when entering a num
E30:J33 | Do not use cell references to Payroll Register table for calculations in these cells.
nded March 31, 2018. Note that Ankel pays time-and-a-half for overtime.
olumns, reference cells within Payroll Register table.
e full credit. If you copy/paste from the Instructions tab, you will be marked wrong. Enter all amounts as positive values. Do

Payroll Register
Withholdings

Current Ending Income

OASDI Medicare Total
Period Cumulative Tax Other
Withholdings
Earnings Earnings
6.2% 1.45% 20.00%
$725.00 ### $45.57 $10.66 $147.00 $203.23
$935.00 $1,475.00 $57.97 $13.56 $187.00 $258.53
$836.00 $1,316.00 $51.83 $12.12 $167.00 $231.15
$2,506.00 $3,946.00 $155.37 $36.34 $501.20 $692.91

8.
her columns, reference cells within Payroll Tax Register table.
e full credit. If you copy/paste from the Instructions tab, you will be marked wrong. Enter all amounts as positive values. Do

Employer Payroll Taxes

FUTA SUTA
Total Taxes
0.60% 5.40%
$4.41 $39.69 $100.33
$5.61 $50.49 $127.63
$5.02 $45.14 $114.11
$15.04 $135.32 $342.07

e full credit. If you copy/paste from the Instructions tab, you will be marked wrong. Enter all amounts as positive values. Do
than the regular amount.

ument should contain a

E_IF_TRUE argument, use 1.5
argument.
gn when entering a numeric value.
unts as positive values. Do

Wages
Net Pay Check No
Expense

$531.77 1104 $735.00

$676.47 1105 $935.00
$604.85 1106 $836.00
$1,813.09 $2,506.00

unts as positive values. Do

unts as positive values. Do

Requirement 4a
(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab, you will be marked wrong. Enter all amounts as positive
values. Do not use a minus sign or parentheses for any values.)

Date Account/Explanation DR CR
Mar 31 Wages Expense 2,506.00
FICA—OASDI Taxes Payable 155.37
FICA—Medicare Taxes Payable 36.34
Employee Income Taxes Payable 501.20
Wages Payable 1,813.09
To record wages expense and payroll withholdings.

Requirement 4b Record the payroll entry Ankel makes for employer payroll taxes related to the three employees on Saturday, March 31, 2018.
(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab, you will be marked wrong. Enter all amounts as positive
values. Do not use a minus sign or parentheses for any values.)

Date Account/Explanation DR CR
Mar 31 Payroll Tax Expense 342.07
FICA—OASDI Taxes Payable 155.37
FICA—Medicare Taxes Payable 36.34
Federal Unemployment Taxes Payable 15.04
State Unemployment Taxes Payable 135.32
To record employer's payroll tax expense.

Requirement 4c Record the payroll entry Ankel makes for payment of all payroll taxes (employee and employer related) on Tuesday, April 3, 2018.
(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab, you will be marked wrong. Enter all amounts as positive
values. Do not use a minus sign or parentheses for any values.)

Date Account/Explanation DR CR
Apr 03 Wages Expense 501.20
FICA—OASDI Taxes Payable 310.74
FICA—Medicare Taxes Payable 72.67
Federal Unemployment Taxes Payable 15.04
State Unemployment Taxes Payable 135.32
Wages Payable 1,034.98
To record payment of payroll tax liabilities.

Requirement 4d Record the payroll entry Ankel makes for payment of wages on Tuesday, April 3, 2018.
(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab, you will be marked wrong. Enter all amounts as positive
values. Do not use a minus sign or parentheses for any values.)

Date Account/Explanation DR CR
Apr 03 Wages Payable 1,034.98
Cash 1,034.98
To record payment of wages.

HINTS
1. For all dates, enter the date in mm/dd/yyyy format.
Cell | Hint:
C5:D9 | In appropriate cells, use cell references to Payroll Register table in ENTERANSWERS1 worksheet.
C16:D20 | In appropriate cells, use cell references to Payroll Tax Register table in ENTERANSWERS1 worksheet.
C28:D32 | In appropriate cells, use cell references to the values in ENTERANSWERS2 worksheet.
C33:D33 | In appropriate cell, use the function =SUM( ) to calculate the amount of the transaction.
C40:D41 | In appropriate cells, use cell references to Payroll Register table in ENTERANSWERS1 worksheet.