Question

Your answer is partially correct. Mary Strand's regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Mary works 45 hours. Mary's federal income tax withholding is $85.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare the employer's journal entries to record (a) Mary's pay for the period and (b) the payment of Mary's wages. Use January 15 for the end of the pay period and the payment date. (Round answers to 2 decimal places, e.g. 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 Salaries and Wages Expense FICA Taxes Payable 85.00 Federal Income Taxes Payable Salaries and Wages Payable (b) Jan. 15 Salaries and Wages Payable Cash

Answer 1

Mary Strand Debit in $ Credit in 665 50.87 Jounal Enteries Date Particulars Jan-15 Salaries and Wages Expense a/c Dr. TO FICA Taxes Payable To Federal Income Tax Payable To Salaries and wages Payable (Salary recorded) 14 x 40 + 21 x 5 = 665 x 7.65% = 5087 85 529.13 Jan-15 529.13 Salaries and wages Payable a/c Dr. To Cash (Salary paid) 529.13