Time cards are being entered into the accounting system for four employees. The costs for Employee 1 are to be billed to job cost code 302.01.01100L. Ten hours of Employee 2 time is to be billed to job cost code 302.01.06110L and the remaining 30 hours are to be billed to job cost code 302.01.06210L.
Employee 3 took vacation this entire week and Employee 4 works in the main office. The employee costs and deductions withheld from the employee's check are shown below. Using the chart of accounts in Figure 2- 1, determine the changes to the balance sheet, income statement, job cost ledger, and equipment ledger as the result of entering the employees' time into the accounting system:
|
1
|
2
|
3
|
4
|
TOTAL
|
|
Employer's Costs
|
|
|
|
|
|
|
Wages
|
600.00
|
400.00
|
350.00
|
500.00
|
1,850.00
|
|
Social Security
|
37.20
|
24.80
|
21.70
|
31.00
|
114.70
|
|
Medicare
|
8.70
|
5.80
|
5.08
|
7.25
|
26.83
|
|
SUTA
|
18.00
|
12.00
|
10.50
|
15.00
|
55.50
|
|
FUTA
|
4.80
|
3.20
|
2.80
|
4.00
|
14.80
|
|
Liability Insurance
|
12.00
|
8.00
|
7.00
|
10.00
|
37.00
|
|
Workers' Comp.
|
54.00
|
36.00
|
31.50
|
15.00
|
136.50
|
|
Health Insurance
|
40.00
|
40.00
|
40.00
|
40.00
|
160.00
|
|
Vacation
|
38.92
|
29.79
|
27.51
|
33.20
|
129.42
|
|
Total
|
813.62
|
559.59
|
496.09
|
655.45
|
2,524.75
|
|
Employee Deductions
|
|
|
|
|
|
|
Social Security
|
37.20
|
24.80
|
21.70
|
31.00
|
114.70
|
|
Medicare
|
8.70
|
5.80
|
5.08
|
7.25
|
26.83
|
|
Federal Withholdings
|
59.85
|
29.85
|
22.35
|
44.85
|
156.90
|
|
State Withholdings
|
36.00
|
24.00
|
21.00
|
30.00
|
111.00
|
|
Health Insurance
|
60.00
|
60.00
|
60.00
|
60.00
|
240.00
|
|
Total
|
201.75
|
144.45
|
130.13
|
173.10
|
649.43
|
Using the chart of accounts in Figure 2-1, determine the changes to the balance sheet, income statement, job cost ledger, and equipment ledger as the result of paying a $5,000 invoice for concrete charged to job cost code
302.01.02620M, $2,273.80 for federal employment taxes, and $1,732 for health insurance. The invoices were previously entered into the accounting system.