CHAPTER 5

Chapter 7Chapter 7

Payroll ProjectPayroll Project

Developed by Lisa Swallow, CPA CMA MSDeveloped by Lisa Swallow, CPA CMA MS

Payroll Accounting 2012

Bernard J. Bieg and Judith A. Toland

How to do the Payroll Project

Start by Downloading the template from the “Spreadsheet” icon on the Unit 8 page in the Classroom. You should be using the template called: 2012_Units_8_&_9_Final_Project_Template_2012.xlsx

This template is color coded by Payroll, the Payroll register and the journal match by color

You will complete the work on pages 7-1 through 7-21 (January 15th transaction)

Steps to Complete WorkVERY IMPORTANT!!!!!!

Read everything carefully-begin on page 7-2.

Pages 7-2 through 7-7 give the company information and the employee details

Read and trace the transactions for the October 9th Payroll that has been done for you (pages 4-7 through 7-10)

Steps to Complete WorkThroughout Chapter 7, you will see “Pay Points” in the

margins of the text. These notes often contain critical information that is not given anywhere else.

You will often find text at the bottom of the Time Clerk’s Reports that alters the way lost time is handled.

If you have questions-ask sooner rather than later, and attach your template so that I can see where you are.

Take your time and start early, this will take approx. 20 hours to complete

Payrolls to CompleteYou have payrolls for the following dates:

October 9 (this one has been done for you)October 23November 6November 13November 20December 4December 14December 18Note: The Payroll is identified by date paid

The order to complete each transaction

1. Complete the Payroll first

2. Transfer the individual employee payroll

data to the employee earnings record

3. Complete the General Journal

Be sure that when it says a deposit was made

that you record it in the journal

4. Post to the General Ledger

The order to complete each transaction

Complete all activity in each transaction before doing anything on the next transaction.

Do not do all of the Payrolls before doing the EERs, Journal Entries or General Ledger.

Some Rules for Journal Entries

There are no circumstances in all of accounting where the sum of a Journal entry’s debits is not exactly equal to the sum of its credits!The Journal must be in strict date sequence.Please leave a blank line after each Journal entry. Do not put any totals or notes in the debit or credit columnsPlease put all debits first, followed by all credits.

Some Rules for The General Ledger

The data in the General Ledger is exactly the same as the data in the Journal. The General Ledger is ordered by account and then by date.

Each account has its own running balance presentation. The formulas for the running balance are already in the G/L for each account.

If you get a “Value Error”, send it to me; I will fix it.

Unit 8 – Part 1October 9th has been done for you.

Part 1 (40 points) October 15th – November 4th on pages 7-11 and 7-12; in the template this is color coded yellow. Use Journal page 42. You must use the template provided - work will not be graded if the template is not used!

Drop each Part in the Drop Box as soon as you complete it. I will grade that part as soon as I can.

Unit 8 – Parts 2 & 3

Part 2 (40 points) Transactions for November 6th - 18th on pages 7-12, 7-13 and 7-14 in the template this is color coded blue. Use Journal page 43.

Part 3 (25 points) Transactions for Transactions for November 20th and 30th on pages 7-14, 7-15 and 7-16 in the template this is color coded dark pink. Use Journal page 44.

Unit 9 – Parts 4 & 5Part 4 (35 points) Transactions for

December 3rd- 4th on pages 7-16 and 7-17. In the template this is color coded orange. Use Journal page 45.

Part 5 (40 points) Transactions for December 9th – 15th on page 7-17. In the template this is color coded tan. Use Journal page 46.

Unit 9 – Part 6

Part 6 (30 points) Transactions for December 18th – January 15th on pages 7-17 through 7-19. In the template this is color coded Blue. Use Journal page 47.

Post January transactions to the Journal, but not to the General Ledger.

About the Check FiguresBelow, you are given the Check Figures for the Payroll Register and Journal.

Your Check Figures for the General Ledger Accounts will be the Account’s ending balance for the month.

The Check Figures for the Employee Earnings Records cannot be entered until the last Payroll has been done.

If you can’t get a Check Figure to work for a General Ledger Account or an Employee Earnings Record, send it to me and I will help you.

Check Figures for the PayrollsOctober 9 (this one has been done for you)

Total Earnings: $14,162.77Net Pay: $ 11,058.80

October 23Total Earnings: $14,484.69Net Pay: $ 11,131.63

November 6Total Earnings: $ 14,130.48Net Pay: $ 10,897.23

Check Figures for the PayrollsNovember 13

Total Earnings: $ 2,079.32Net Pay: $ 1,412.13

November 20Total Earnings: $ 12,640.23Net Pay: $ 8,240.91

December 4Total Earnings: $ 14,431.09Net Pay: $ 9,722.77

Check Figures for the PayrollsDecember 14

Total Earnings: $ 1,425.16Net Pay: $ 1,306.30

December 18Total Earnings: $ 74,922.49Net Pay: $ 39,367.66

Check Figures for the JournalOctober 31 – 53,747.68

November 30 – 113,934,63

December 31 – 270,427,16

January 31 – 310,062.46

GOOD LUCK, EVERYONE!