Question

Requirements 1. Compute Stanton's gross pay and net pay for the week. Assume earnings to date are $14,000 2. Journalize Frosty World's wages expense accrual for Stanton's work. An explanation is not required 3. Journalize the subsequent payment of wages to Stanton. Print Done

Answer 1

Ans:

1. Gross pay = regular pay + overtime

Gross pay = 40*$18+ (19*$18* 1.5)

Gross pay = $ 720+ $ 513

Gross pay = $ 1,233

Particulars	Amount($)
Net pay
Gross pay	$1,233
less: income tax withheld($1,233* 40%)	$493.20
Less: OSADI ( $1,233*6.2%)	$ 76.446
Less: Medicare tax (1,233*1.45%)	$ 17.878
Less: united way payable	$7
Net pay (1,233-493.20-76.446-17.878-7)	$ 638.476

2. Journal entry for recording for frosty world wages expenses

S.no	Account title and explanation	Debit($)	Credit($)
	Salaries expenses	$1,233
	Federal income tax withholding		$493.20
	OSADI taxes payable		$76.446
	Medicare tax payable		$17.878
	United way payable		$ 7
	Salaries payable		$638.476
	(to record wages expenses)

3.

S.no	Account title and explanation	Debit($)	Credit($)
	Salaries payable	$638.476
	Cash		$638.46
	(to record payment of wages)