I - Problem on Payroll

Atty Dan V Dee established DVD Law Firm (the Firm) a year ago, and it renders legal consultancy services to various
The Firm employs 3 paralegal officers, and 1 office administrative assistant and 1 part-time lawyer, who handles spe
for the firm. The part-time lawyer, Atty Ross Lee reports 2x a week (every Monday & Tuesday), and is being paid P4
She doesn't have full time employment, so the owner deducts from her gross pay, and contributes to her statutory b
The Firm pays semi-monthly salaries on the 15th and 30th day of the month for payroll period 28th day of the prev
month up to 12th day of the current month (1st cut-off) and for the period 13th to 27th day of the current month (2
off), respectively. Details about the The Firm's employees and their salaries are as follows:

Name Designation Salary Rate

Jun Park Senior Paralegal Officer ₱40,000.00 per month
Gummy Park Paralegal 30,000.00
Shin Park Paralegal 20,000.00
Miny Park Administrative Asst 15,000.00
Atty Ross Lee Part-time Lawyer 4,000.00 per day

Requirements:
Gen. Instruction: Provide answers to the following requirements using Excel. Use the blue shaded areas for inputs
1.      Complete the Payroll Register for the five employees for pay period September 13-27, 2021. Format
2.      Complete the Payroll Tax Register for the month of September 2021 (Consider the monthly salaries a
3.      Record the payroll entries the Firm makes for each of the following:
a. Salary expense related to the five employees for pay period September 13-27, 2021.
b. Payment of payroll on September 30, 2021.
c. Employer payroll taxes related to the five employees, for the month of September.
d. Prepare adjusting entry to accrue the salary for the last 3 days of September assuming the the Firm p
(use the ratio 3/30 to compute for the monthly salaried personnel for 3 days; accrue according to actual number
e. Payment of all September payroll taxes (employee and employer related) on Oct 15

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

###
Format peso amounts to two decimal places.
nsultancy services to various clients.
me lawyer, who handles special cases
uesday), and is being paid P4,000/day.
contributes to her statutory benefits.
period 28th day of the previous
h day of the current month (2nd cut-
ows:

blue shaded areas for inputs.

ember 13-27, 2021. Format to two decimal places.
nsider the monthly salaries as the basis of payroll taxes)

3-27, 2021.

eptember.
ber assuming the the Firm prepares monthly reports.
ue according to actual number of days worked between Sept 28-30 for Atty Ross Lee)
) on Oct 15

agraph Group on the Home Tab.

Code l Account Title
10001 Cash
20201 Salaries Payable
20202 SSS Premium Payable
20203 SSS MPF Payable
20204 EC Contribution Payable
20205 PH Premium Payable
20206 HDMF Premium Payable
20207 Withholding Income Taxes Payable
50101 Salaries Expense
50102 Payroll Tax Expense
Table 1. ANNUAL TAX TABLE
EFFECTIVE DATE J ANUARY 1 , 2 0 1 8 to DECEMBER 3 1 , 2 0 2 2
No t o ve r P2 5 0 ,0 0 0 0%
Ove r P2 5 0 ,0 0 0 b u t n o t o v e r P4 0 0 ,0 0 0 2 0 % o f t h e e xce s s o ve r P2 5 0 ,0 0 0
Ove r P4 0 0 ,0 0 0 b u t n o t o v e r P8 0 0 ,0 0 0 P3 0 ,0 0 0 + 2 5 % o f t h e e xce s s o v e r P4 0 0 ,0 0 0
Ove r P8 0 0 ,0 0 0 b u t n o t o v e r P2 ,0 0 0 ,0 0 0 P1 3 0 ,0 0 0 + 3 0 % o f t h e e xce s s o ve r P8 0 0 ,0 0 0
Ove r P2 ,0 0 0 ,0 0 0 b u t n o t o ve r P8 ,0 0 0 ,0 0 0 P4 9 0 ,0 0 0 + 3 2 % o f t h e e xce s s o ve r P2 ,0 0 0 ,0 0 0
Ove r P8 ,0 0 0 ,0 0 0 P2 ,4 1 0 ,0 0 0 + 3 5 % o f th e e xce s s o ve r P8 ,0 0 0 ,0 0 0
EFFECTIVE DATE JANUARY 1 , 2 0 2 3
No t o ve r P2 5 0 ,0 0 0 0%
Ove r P2 5 0 ,0 0 0 b u t n o t o v e r P4 0 0 ,0 0 0 1 5 % o f t h e e xce s s o ve r P2 5 0 ,0 0 0
Ove r P4 0 0 ,0 0 0 b u t n o t o v e r P8 0 0 ,0 0 0 P2 2 ,5 0 0 + 2 0 % o f t h e e xce s s o v e r P4 0 0 ,0 0 0
Ove r P8 0 0 ,0 0 0 b u t n o t o v e r P2 ,0 0 0 ,0 0 0 P1 0 2 ,5 0 0 + 2 5 % o f t h e e xce s s o ve r P8 0 0 ,0 0 0
Ove r P2 ,0 0 0 ,0 0 0 b u t n o t o ve r P8 ,0 0 0 ,0 0 0 P4 0 2 ,5 0 0 + 3 0 % o f t h e e xce s s o ve r P2 ,0 0 0 ,0 0 0
Ove r P8 ,0 0 0 ,0 0 0 P2 ,2 0 2 ,5 0 0 + 3 5 % o f th e e xce s s o ve r P8 ,0 0 0 ,0 0 0

Table 1. ANNUALTAXTABLE
Table 2. WITHHOLDING TAX TABLE
REVISED WITH
Effective January 1,
DAILY 1 2 3
Compensation Range P685 and below P685 -P1,095 P1,096 - P2,191
Prescribed Withholding 0.00 +20% ove r P82.19 +25% ov
0.00
Tax P685 P1,096
WEEKLY 1 2 3
P4,808 and
Compensation Range P4,808 - P7,691 P7,692 - P15,38
below
Prescribed Withholding 0.00 +20% ove r P576.92 +25% ov
0.00
Tax P4,808 p7,692
SEMI-MONTHLY 1 2 3
P10,417 and
Compensation Range P10,417 - P16,666 P16,667 - P33,33
below
Prescribed Withholding 0.00 +20% ove r P1,250.00 +25% o
0.00
Tax P10,417 P16,667
MONTHLY 1 2 3
P20,833 and
Compensation Range P20,833 - P33,332 P33,333 - P66,66
below
Prescribed Withholding 0.00 +20% ove r P2,500.00 +25% o
0.00
Tax P20,833 33,333
Source: https://www.bir.gov.ph
2

0
e r P4 0 0 ,0 0 0
ve r P8 0 0 ,0 0 0
ve r P2 ,0 0 0 ,0 0 0
o ve r P8 ,0 0 0 ,0 0 0

0
e r P4 0 0 ,0 0 0
ve r P8 0 0 ,0 0 0
ve r P2 ,0 0 0 ,0 0 0
o ve r P8 ,0 0 0 ,0 0 0
Table 1. ANNUALTAXTABLE

REVISED WITHHOLDING TAX TABLE

Effective January 1, 2018 to D ecember 31, 2022
3 4 5 6
P1,096 - P2,191 P2,192 - P5,478 P5,479 - P21,917 P21,918 and abo
P82.19 +25% ove r P356.16 +30% ove r P1,342.47 +32% ove r P6,602.74 +35%
P1,096 P2,192 P5,479 P21,918
3 4 5 6
P7,692 - P15,384 P15,385 - P38,461 P38,462 - P153,845 P153,846 a nd ab
P576.92 +25% ove r P2,500.00 +30% ove r P9,423.08 +32% ove r P46,346.15 +35%
p7,692 p15,385 P38,462 P153,846
3 4 5 6
6 P16,667 - P33,332 P33,333 - P83,332 P83,333 - P333,332 P333,333 a nd ab
P1,250.00 +25% ove r P5,416.67 +30% ove r P20,416.67 +32% ove r P100,416.67 +35%
P16,667 P33,333 P83,333 P333,333
3 4 5 6
2 P33,333 - P66,666 P66,667 - P166,666 P166,667 - P666,666 P666,667 a nd ab
P2,500.00 +25% ove r P10,833.33 +30% ove r P40,833.33 +32% ove r P200,833.33 +35%
33,333 P66,667 P166,667 P666,667
 6
P21,918 and above
P6,602.74 +35% ove r
P21,918
6
P153,846 a nd above
P46,346.15 +35% ove r
P153,846
6
P333,333 a nd above
P100,416.67 +35% ove r
P333,333
6
P666,667 a nd above
P200,833.33 +35% ove r
P666,667
 Monthly Salary Credit
RANGE OF Regular Social
COMPENSATION Security/ REGULAR SOCIAL SECURITY
Mandatory Total
Employees' Provident
Compensation Fund ER EE TOTAL
Below 3,250 3,000.00 - 3,000.00 255.00 135.00 390.00
3,250 - 3,749.99 3,500.00 - 3,500.00 297.50 157.50 455.00
3,750 - 4,249.99 4,000.00 - 4,000.00 340.00 180.00 520.00
4,250 - 4,749.99 4,500.00 - 4,500.00 382.50 202.50 585.00
4,750 - 5,249.99 5,000.00 - 5,000.00 425.00 225.00 650.00
5,250 - 5,749.99 5,500.00 - 5,500.00 467.50 247.50 715.00
5,750 - 6,249.99 6,000.00 - 6,000.00 510.00 270.00 780.00
6,250 - 6,749.99 6,500.00 - 6,500.00 552.50 292.50 845.00
6,750 - 7,249.99 7,000.00 - 7,000.00 595.00 315.00 910.00
7,250 - 7,749.99 7,500.00 - 7,500.00 637.50 337.50 975.00
7,750 - 8,249.99 8,000.00 - 8,000.00 680.00 360.00 1,040.00
8,250 - 8,749.99 8,500.00 - 8,500.00 722.50 382.50 1,105.00
8,750 - 9,249.99 9,000.00 - 9,000.00 765.00 405.00 1,170.00
9,250 - 9,749.99 9,500.00 - 9,500.00 807.50 427.50 1,235.00
9,750 - 10,249.99 10,000.00 - 10,000.00 850.00 450.00 1,300.00
10,250 - 10,749.99 10,500.00 - 10,500.00 892.50 472.50 1,365.00
10,750 - 11,249.99 11,000.00 - 11,000.00 935.00 495.00 1,430.00
11,250 - 11,749.99 11,500.00 - 11,500.00 977.50 517.50 1,495.00
11,750 - 12,249.99 12,000.00 - 12,000.00 1,020.00 540.00 1,560.00
12,250 - 12,749.99 12,500.00 - 12,500.00 1,062.50 562.50 1,625.00
12,750 - 13,249.99 13,000.00 - 13,000.00 1,105.00 585.00 1,690.00
13,250 - 13,749.99 13,500.00 - 13,500.00 1,147.50 607.50 1,755.00
13,750 - 14,249.99 14,000.00 - 14,000.00 1,190.00 630.00 1,820.00
14,250 - 14,749.99 14,500.00 - 14,500.00 1,232.50 652.50 1,885.00
14,750 - 15,249.99 15,000.00 - 15,000.00 1,275.00 675.00 1,950.00
15,250 - 15,749.99 15,500.00 - 15,500.00 1,317.50 697.50 2,015.00
15,750 - 16,249.99 16,000.00 - 16,000.00 1,360.00 720.00 2,080.00
16,250 - 16,749.99 16,500.00 - 16,500.00 1,402.50 742.50 2,145.00
16,750 - 17,249.99 17,000.00 - 17,000.00 1,445.00 765.00 2,210.00
17,250 - 17,749.99 17,500.00 - 17,500.00 1,487.50 787.50 2,275.00
17,750 - 18,249.99 18,000.00 - 18,000.00 1,530.00 810.00 2,340.00
18,250 - 18,749.99 18,500.00 - 18,500.00 1,572.50 832.50 2,405.00
18,750 - 19,249.99 19,000.00 - 19,000.00 1,615.00 855.00 2,470.00
19,250 - 19,749.99 19,500.00 - 19,500.00 1,657.50 877.50 2,535.00
19,750 - 20,249.99 20,000.00 - 20,000.00 1,700.00 900.00 2,600.00
20,250 - 20,749.99 20,000.00 500.00 20,500.00 1,700.00 900.00 2,600.00
20,750 - 21,249.99 20,000.00 1,000.00 21,000.00 1,700.00 900.00 2,600.00
21,250 - 21,749.99 20,000.00 1,500.00 21,500.00 1,700.00 900.00 2,600.00
21,750 - 22,249.99 20,000.00 2,000.00 22,000.00 1,700.00 900.00 2,600.00
22,250 - 22,749.99 20,000.00 2,500.00 22,500.00 1,700.00 900.00 2,600.00
22,750 - 23,249.99 20,000.00 3,000.00 23,000.00 1,700.00 900.00 2,600.00
23,250 - 23,749.99 20,000.00 3,500.00 23,500.00 1,700.00 900.00 2,600.00
23,750 - 24,249.99 20,000.00 4,000.00 24,000.00 1,700.00 900.00 2,600.00
24,250 - 24,749.99 20,000.00 4,500.00 24,500.00 1,700.00 900.00 2,600.00
24,750 - over 20,000.00 5,000.00 25,000.00 1,700.00 900.00 2,600.00
 AMOUNT OF CONTRIBUTIONS
MANDATORY PROVIDENT
EMPLOYEE'S COMPENSATION FUND TOTAL

ER EE TOTAL ER EE TOTAL ER EE
10.00 - 10.00 - - - 265.00 135.00
10.00 - 10.00 - - - 307.50 157.50
10.00 - 10.00 - - - 350.00 180.00
10.00 - 10.00 - - - 392.50 202.50
10.00 - 10.00 - - - 435.00 225.00
10.00 - 10.00 - - - 477.50 247.50
10.00 - 10.00 - - - 520.00 270.00
10.00 - 10.00 - - - 562.50 292.50
10.00 - 10.00 - - - 605.00 315.00
10.00 - 10.00 - - - 647.50 337.50
10.00 - 10.00 - - - 690.00 360.00
10.00 - 10.00 - - - 732.50 382.50
10.00 - 10.00 - - - 775.00 405.00
10.00 - 10.00 - - - 817.50 427.50
10.00 - 10.00 - - - 860.00 450.00
10.00 - 10.00 - - - 902.50 472.50
10.00 - 10.00 - - - 945.00 495.00
10.00 - 10.00 - - - 987.50 517.50
10.00 - 10.00 - - - 1,030.00 540.00
10.00 - 10.00 - - - 1,072.50 562.50
10.00 - 10.00 - - - 1,115.00 585.00
10.00 - 10.00 - - - 1,157.50 607.50
10.00 - 10.00 - - - 1,200.00 630.00
10.00 - 10.00 - - - 1,242.50 652.50
30.00 - 30.00 - - - 1,305.00 675.00
30.00 - 30.00 - - - 1,347.50 697.50
30.00 - 30.00 - - - 1,390.00 720.00
30.00 - 30.00 - - - 1,432.50 742.50
30.00 - 30.00 - - - 1,475.00 765.00
30.00 - 30.00 - - - 1,517.50 787.50
30.00 - 30.00 - - - 1,560.00 810.00
30.00 - 30.00 - - - 1,602.50 832.50
30.00 - 30.00 - - - 1,645.00 855.00
30.00 - 30.00 - - - 1,687.50 877.50
30.00 - 30.00 - - - 1,730.00 900.00
30.00 - 30.00 42.50 22.50 65.00 1,772.50 922.50
30.00 - 30.00 85.00 45.00 130.00 1,815.00 945.00
30.00 - 30.00 127.50 67.50 195.00 1,857.50 967.50
30.00 - 30.00 170.00 90.00 260.00 1,900.00 990.00
30.00 - 30.00 212.50 112.50 325.00 1,942.50 1,012.50
30.00 - 30.00 255.00 135.00 390.00 1,985.00 1,035.00
30.00 - 30.00 297.50 157.50 455.00 2,027.50 1,057.50
30.00 - 30.00 340.00 180.00 520.00 2,070.00 1,080.00
30.00 - 30.00 382.50 202.50 585.00 2,112.50 1,102.50
30.00 - 30.00 425.00 225.00 650.00 2,155.00 1,125.00
TOTAL

TOTAL
400.00
465.00
530.00
595.00
660.00
725.00
790.00
855.00
920.00
985.00
1,050.00
1,115.00
1,180.00
1,245.00
1,310.00
1,375.00
1,440.00
1,505.00
1,570.00
1,635.00
1,700.00
1,765.00
1,830.00
1,895.00
1,980.00
2,045.00
2,110.00
2,175.00
2,240.00
2,305.00
2,370.00
2,435.00
2,500.00
2,565.00
2,630.00
2,695.00
2,760.00
2,825.00
2,890.00
2,955.00
3,020.00
3,085.00
3,150.00
3,215.00
3,280.00
Table 4. Phil Health Contribution Schedule

Source: https://www.philhealth.gov.ph
 Complete the Payroll Register for the five employees for pay period September 13-27, 2021. Numb
Requirement 1

Payroll Register
For pay period
Gross Monthly Pay SSS Regular
Sept 13-27

Jun Park
Gummy Park
Shin Park
Miny Park
Atty Ross Lee
TOTALS

Requirement 2 Complete the Payroll Tax Register for the month of September 2021 (Consider the monthly salarie

Payroll Tax Register

Payroll Taxes
Gross Monthly Pay SSS Regular SSS MPF
Jun Park
Gummy Park
Shin Park
Miny Park
Atty Ross Lee
TOTALS

Requirement 3d Computation of accrual of payroll for Sept 28-30, 2021.

Accrued Salary
28-30 Sept
Jun Park
(use the ratio 3/30 to compute for
Gummy Park the monthly salaried personnel
for 3 days; accrue according to
Shin Park actual number of days worked
Miny Park between Sept 28-30 for Atty Ross
Lee)
Atty Ross Lee
TOTALS
eriod September 13-27, 2021. Number Format to comma (,).

Payroll Register
Taxable Withholding
SSS MPF PH HDMF Net Pay
Income Taxes

2021 (Consider the monthly salaries as the basis of payroll taxes and 8 working days per month for Atty Ross Lee)

ll Tax Register
Payroll Taxes
EC PH HDMF TOTAL
tty Ross Lee)
Requirement 3a Record the payroll entry the Firm makes for salary expense related to the five employees for pay period September 13-27, 2021.

Date Account/Explanation DR CR

To record salaries expense and payroll withholdings.

Requirement 3b Record the payroll entry the Firm makes for payment of payroll on September 30, 2021.
Date Account/Explanation DR CR

To record payment of salaries.

Requirement 3c Record the payroll entry the Firm makes for employer payroll taxes related to the five employees, for the month of September.

Date Account/Explanation DR CR

To record employer's payroll tax expense.

Record the adjusting entry the Firm makes to accrue the salary for the last 3 days of September assuming the Firm prepares monthly reports. (use the ratio 3/30 to compute
Requirement 3d for the monthly salaried
Date Account/Explanation DR CR personnel for 3 days; accrue
according to actual number of
days worked between Sept 28-
30 for Atty Ross Lee)

To record adjusting entry for salary accrual.

Requirement 3e Record the entry the Firm makes for payment of all payroll taxes (employee and employer related) on Oct 15

Date Account/Explanation DR CR

To record payment of payroll tax liabilities.

The following balances appear in the accounts of Healer Security Services for December 31, 2020:

Accounts Payable 76,725.00

Accounts Receivable 94,425.00
Accumulated Depreciation - Equipment 47,400.00
Accumulated Depreciation - Furnitures 16,575.00
Allowance for bad debts 11,775.00
Bad debts expense 8,400.00
Cash ???
Depreciation expense 25,275.00
EC Premiums Payable 150.00
Equipment 245,250.00
Furniture & Fixtures 118,725.00
Mortgage Payable 66,300.00
Notes Payable 10,050.00
Wook, Capital 322,350.00
Wook, Drawing 16,875.00
Pag-IBIG Premiums Payable 1,000.00
Payroll Tax Expense 12,100.00
PhilHealth Premiums Payable 4,100.00
Prepaid rent 32,550.00
Rent expense 59,550.00
Rent income 34,500.00
Salaries expense 174,450.00
Salaries Payable 14,500.00 -
Service income 475,650.00
SSS Premiums Payable 14,300.00
 Supplies 10,950.00
Supplies expense 16,725.00
Utilities expense 66,150.00
Withholding income taxes payable 8,950.00
-
Instructions:
Prepare the following by filling up the blue-filled parts of the succeeding sheet/tab, based on t
a. Properly classified* Trial Balance (II-Trial Balance Tab)
b. Statement of Profits & Losses, Capital Statement and Statement of Financial Position (II-FS T

Finish these requirements first (offline) before starting or clicking "Take Quiz" in your assessme
questions and corresponding answers on the assessment are based on how you will accomplish
and Financial Statements.

*Properly classifed in sequence as to:

Current Assets
Non-current Assets
Current Liabilities
Non-current Liabilities
Equity
Revenues
Expenses
December 31, 2020:
 sheet/tab, based on the above list of account balances.

ancial Position (II-FS Tab)

Quiz" in your assessment, because the

ow you will accomplish the Trial Balance
 TRIAL BALANCE

Account Title DEBIT CREDIT

TOTALS
 STATEMENT OF PROFIT & LOSS

Revenues:

Less: Operating Expenses

CAPITAL STATEMENT
ENT STATEMENT OF FINANCIAL POSITION

Current Assets:

Non-Current Assets:

Current Liabilities:

Non-Current Liabilities:

Owner's Equity
NANCIAL POSITION