Problem 1:

a. P2000

b. P 1600

Problem 2:

SSS

Employees Employer Share Employee Share Total

Mark 1600 800 2400
Joan 1200 600 1800
Irene 1600 800 2400
Earl 1600 800 2400
Marie 1280 640 1920
Total 7280 3640 10,920

Philhealth

Employees Monthly Gross Monthly Premium Employer Share Employee Share

Earning
Mark 35,000 962.5 482.25 482.25
Joan 15,000 412.5 206.25 206.25
Irene 20,000 550 275 275
Earl 25,000 687.5 343.75 343.75
Marie 16,000 440 220 220
Total 111,000 3,052.5 1,526.25 1,526.25

Pag-IBIG

Employees Monthly Gross Employer Share Employee Share

Earning
Mark 35,000 700 700
Joan 15,000 300 300
Irene 20,000 400 400
Earl 25,000 500 500
Marie 16,000 320 320
Total 111,000 2220 2220
Computation of Taxable income

Mark
Gross Earnings 35,000
Less: SSS Contribution 800
Pag- Ibig Contribution 700
Philhealth Contribution 482.25
Taxable Income 33,017.75

Joan
Gross Earnings 15,000
Less: SSS Contribution 600
Pag- Ibig Contribution 300
Philhealth Contribution 206.25
Taxable Income 13,893.75

Irene
Gross Earnings 20,000
Less: SSS Contribution 800
Pag- Ibig Contribution 400
Philhealth Contribution 275
Taxable Income 18,525

Earl
Gross Earnings 25,000
Less: SSS Contribution 800
Pag- Ibig Contribution 500
Philhealth Contribution 343.75
Taxable Income 23,356.25

Marie
Gross Earnings 16,000
Less: SSS Contribution 640
Pag- Ibig Contribution 320
Philhealth Contribution 220
Taxable Income 14,820
Computation of Withholding Tax

1. Mark
First 20,833 0
Excess (33,017.75 – 20,833) x 20% 2,436.95
Total 2,436.95
2. Joan (column 1)
3. Irene (Column 1)
4. Earl
First 20,833 0
Excess (23,356.25 – 20,833) x 20% 504.65
Total 504.65
5. Marie (Column 1)

ATOM CORPORATION
PAYROLL SHEET
For the month ended January 30, 2020
Employees Monthly WTAX SSS Philhealth HDMF Total Net Pay
Gross Deduction
Earning
Mark 35,000 2,436.95 800 482.25 700 4,419.2 30,580.8
Joan 15,000 600 206.25 300 1,106.25 13,893.75
Irene 20,000 800 275 400 1,475 18,525
Earl 25,000 504.65 800 343.75 500 2,148.4 22,851.6
Marie 16,000 640 220 320 1,180 14,820
Total 111,000 2,941.6 3640 1,527.25 2220 10,328.85 100,671.15

JOURNAL ENTRIES

1. To record payroll and employee contribution

Payroll 111,000
WTAX Payable 2,941.6
SSS Premium Payable 3,640
Philhealth Premium Payable 1,527.25
Pag-Ibig Premium Payable 2220
Accrued Payroll 100,671.15
 2. To record the distribution of Payroll

Work in Process 31,000

Factory Overhead Control 20,000
Administrative Expenses 35,000
Selling Expenses 25,000
Payroll 111,000

3. To record employer’s contributions

Factory Overhead Control 5,801.25

Administrative Expense 2,782.25
Selling Expense 2,443.75
SSS Premium Payable 7280
Philhealth Premium Payable 1,527.25
Pag-Ibig Premium Payable 2220

Problem 3

ATOM CORPORATION
PAYROLL SHEET
For the month ended January 30, 2020
Employees Monthly WTAX SSS Philhealth HDMF Total Net Pay
Gross Deduction
Earning
Harold 2,375 118.75 71.25 23.75 23.75 237.5 2,137.5
Aileen 2,205 110.25 66.15 22.05 22.05 220.5 1,984.5
Jameson 2,860 143 85.8 28.60 28.60 286 2,574
Jay 3,000 150 90 30 30 300 2,700
Raymond 3,480 174 104.4 34.80 34.80 348 3,132
Edward 2,340 117 70.2 23.4 23.4 234 2,106
Total 16,260 813 487.8 162.6 162.6 1,626 14,634

JOURNAL ENTRIES

1. To record payroll and employee contribution

Payroll 16,260
WTAX Payable 813
SSS Premium Payable 487.8
Philhealth Premium Payable 162.6
Pag-Ibig Premium Payable 162.6
Accrued Payroll 14,634
 2. To record the distribution of Payroll

Work in Process 7,575

Factory Overhead Control 3,000
Administrative Expenses 2,205
Selling Expenses 3,480
Payroll 16,260

Problem 4

1. Work in Process 6,375

Payroll 6,375

2. Work in Process 6,000

Factory Overhead Control 375
Payroll 6,375
Problem 5

Employee Gross Earning

Brian 57,600
Chris 50,825
Regie 45,000
Tom 59,850
Jack 68,500

Problem 6

Computation

Bonus (18,000/ 11.5 months) 1,565.22

Vacation Leave Incentive (18,000 x ½) / 11.5 months) 782.61
Pension (4,000 / 12 months) 333.33
Total Fringe benefits Liability 2,681.16

Problem 7
a.
Payroll 1,000,000
WTAX Payable 100,000
SSS Premium Payable 20,000
Philhealth Premium Payable 10,000
Pag-Ibig Premium Payable 10,000
Accrued Payroll 860,000
 b. Work in Process 500,000
Factory Overhead Control 200,000
Administrative Expenses 250,000
Selling Expenses 50,000
Payroll 1,000,000

c. Factory Overhead Control 42,000

Administrative Expense 15,000
Selling Expense 3,000
SSS Premium Payable 40,000
Philhealth Premium Payable 10,000
Pag-Ibig Premium Payable 10,000

d. Accrued Payroll 860,000

Cash 860,000

Problem 8

a.
Payroll 8,500,000
WTAX Payable 2,125,000
SSS Premium Payable 425,000
Philhealth Premium Payable 85,000
Pag-Ibig Premium Payable 85,000
Accrued Payroll 5,780,000
b.
Work in Process 8,500,000
Payroll 8,500,000
c.
Cash 5,780,000
Accrued Payroll 5,780,000

Problem 9
Payroll 65,312.5
WTAX Payable 16,328.13
SSS Premium Payable 5,225
Philhealth Premium Payable 1,306.25
Pag-Ibig Premium Payable 1,306.25
Accrued Payroll 41,146.87
Problem 10

Work in Process 4,000

Factory Overhead 2,400
Payroll 6,400

Expense 1,800
Payroll 1,800