Question

2. Carmen Flores' weekly gross earnings for the week ending Dec. 27, 2018 were $3,500, and her federal income tax withholding was $525, retirement contribution $75 in this payroll. Federal unemployment tax is $80; state unemployment tax is $120. Assuming the social security rate is 6% and Medicare is 1.5% of all earnings. (18 points) Question a: What is Flores' net pay? Round your answer to two decimal places. (8 points, calculation procedure counts 6 points, filling the blank counts 2 points) Net Pay = Question b: Please record the company’s journal entry to record Carmen Flore’s earning on Dec 27. (Note: this payroll was not paid to employee on Dec 27, 2018) (5 points) Date Account Name Debit Credit Question c: Please record the company’s journal entry to record Carmen Flore’s payroll tax on Dec 27. (5 points) Date Account Name Debit Credit

Answer 1

Total wage payment		3500
Less: Federal income tax withholding	525
Social security tax (3500-75)*6%	205.50
Medicare tax (3500-75)*1.5%	51.38	(781.88)
Net pay		$2718.12

General journal	Debit	Credit
Salaries and wages expense	3500
Federal income tax		525
Social security tax		205.50
Medicare tax		51.38
Salaries and wages payable		2718.12

General journal	Debit	Credit
Payroll tax expense	456.88
Social security tax		205.50
Medicare tax		51.38
state unemployment taxes		120
Federal unemployment t taxes		80