Question

urrent Attempt in Progress Debra Strands 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. Debra works 48 hours Debra's federal income tax withholding is $89.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65% Prepare the employer's journal entries to record(a) Debra's pay for the period and (b) the payment of Debra's wages. Use January 15 for the end of the pay period and the payment date. (Round answers to 2 decimal places, s. 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 e Textbook and Media Assistance Used List of Accounts Attempts: 0 of 3 used Submit Answer

Answer 1

No.	Date	Account Titles and Explanation	Debit	Credit
(a)	Jan. 15	Salaries and Wages expense        [Refer working note]	$728.00
		Federal income taxes payable		$89.00
		FICA taxes payable       [$728 x 7.65%]		$55.69
		Salaries and Wages Payable         [Gross pay - Withholdings = $728 - $89 - $55.69]		$583.31
(b)	Jan. 15	Salaries and Wages Payable	$583.31
		Cash		$583.31

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Working note - Calculation of gross pay
	Hours (a)	Wage rate applicable (b)	Wages (a x b)
Normal working hours	40	$14	$560
Overtime hours   [48 hours - 40 hours]	8	$21	$168
Total gross wages       [$560 + $168]			$728