Question

Sandra Strand's regular hourly wage rate is $18, and she receives an hourly rate of $27 for work in excess of 40 hours. During a January pay period, Sandra works 46 hours. Sandra's federal income tax withholding is $91.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare the employer's journal entries to record(a) Sandra's pay for the period and (b) the payment of Sandra's wages. Use January 15 for the end of the pay period and the payment date. (Round answers to 2 decimal places, eg. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 15 (b) Jan. 15

Answer 1

B9 fx no. - B X C A E F G Regular Pay Excess Pay Gross Salary FICA Taxes Payable Federal Income Tax Payable Salary Payable $ 720.00 $ 189.00 $ 909.00 $69.54 $ 91.00 $ 748.46 no. date account titles and explanation debit credit a $ 909.00 N 15-Jan Salaries and Wages Expense FICA Taxes Payable Federal Income Tax Payable Salaries and Wages Payable (to record Salaries and Wages Expense) $ 69.54 $ 91.00 $ 748.46 w o covoru b $ 748.46 15-Jan Salaries and Wages Payable Cash (to record payment of Salaries and Wages) $ 748.46

for formulas and calculations, refer to the image below -

fx no. А x в ✓ с Regular Pay Excess Pay Gross Salary FICA Taxes Payable Federal Income Tax Payable Salary Payable =40*18 =7*27 =SUM(E2:E3) =ROUND(E4*7.65%,2) =E4-E5-E6 no. date account titles and explanation debit credit =E4 a 43480 Salaries and Wages Expense FICA Taxes Payable Federal Income Tax Payable Salaries and Wages Payable (to record Salaries and Wages Expense) =E5 =E6 =E11-F12-F13 b =F14 43480 Salaries and Wages Payable Cash (to record payment of Salaries and Wages) =E17

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