Question

james companys payroll register has the following totals for two semimonthly pay periods, august 1-15 and august 16-31 of the current year. journalize payment of the two payrolls on page 10 of the cash payments journal provided. the first payroll was paid by check no. 692 on august 15 of the current year. the second payroll was paid by check no. 708 on august 31 of the current year.

period	total earnings	deductions					net pay
aug 1-15	$7,280.00	$492.00	$451.36	$105.56	$300.00	$450.00	$5,391.08
aug 16-31	$7,490.00	$518.00	$464.38	$108.61	$390.00	$450.00	$5,559.01

cash payments journal
page 10

date	account title	ck. no.	post. ref.	general		accounts payable debit	purchases discount credit	cash credit
1								1
2								2
3								3
4								4
5								5
6								6

Explanation:

Step1: Identify Aug 1-15 payroll accounts

When paying payroll, we debit the accrued payroll liability (Salaries and Wages Payable, which equals total earnings) and credit Cash for net pay, while also recording the deductions as debits to their respective payable accounts.
For Aug 1-15:
Total Earnings = $\$7,280.00$
Deductions: Federal Income Tax = $\$492.00$, Social Security Tax = $\$451.36$, Medicare Tax = $\$105.56$, Health Insurance = $\$300.00$, Retirement Contributions = $\$450.00$
Net Pay (Cash Credit) = $\$5,391.08$

Step2: Journalize Aug 1-15 payroll payment

Record the transaction in the cash payments journal:
Date: Aug 15
Account Title: Salaries and Wages Payable, Federal Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable, Health Insurance Payable, Retirement Contributions Payable
CK NO.: 692
General Debit (Salaries & Wages Payable): $\$7,280.00$
General Debit (Federal Income Tax Payable): $\$492.00$
General Debit (Social Security Tax Payable): $\$451.36$
General Debit (Medicare Tax Payable): $\$105.56$
General Debit (Health Insurance Payable): $\$300.00$
General Debit (Retirement Contributions Payable): $\$450.00$
Cash Credit: $\$5,391.08$

Step3: Identify Aug 16-31 payroll accounts

Repeat the process for the second pay period:
Total Earnings = $\$7,490.00$
Deductions: Federal Income Tax = $\$518.00$, Social Security Tax = $\$464.38$, Medicare Tax = $\$108.61$, Health Insurance = $\$390.00$, Retirement Contributions = $\$450.00$
Net Pay (Cash Credit) = $\$5,559.01$

Step4: Journalize Aug 16-31 payroll payment

Record the transaction in the cash payments journal:
Date: Aug 31
Account Title: Salaries and Wages Payable, Federal Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable, Health Insurance Payable, Retirement Contributions Payable
CK NO.: 708
General Debit (Salaries & Wages Payable): $\$7,490.00$
General Debit (Federal Income Tax Payable): $\$518.00$
General Debit (Social Security Tax Payable): $\$464.38$
General Debit (Medicare Tax Payable): $\$108.61$
General Debit (Health Insurance Payable): $\$390.00$
General Debit (Retirement Contributions Payable): $\$450.00$
Cash Credit: $\$5,559.01$

Answer:

Cash Payments Journal (Page 10)

DATE	ACCOUNT TITLE	CK NO.	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	ACCOUNTS PAYABLE DEBIT	PURCHASES DISCOUNT CREDIT	CASH CREDIT
Aug 31	Salaries and Wages Payable, Federal Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable, Health Insurance Payable, Retirement Contributions Payable	708		$\$7,490.00$				$\$5,559.01$

Note: The total general debit for each entry equals the sum of all deduction accounts plus the net pay, which matches total earnings, ensuring the journal entry balances.