Question

E11-18 (similar to) Question Help Holden Santana manages a Dairy King drive-in. His straight time pay is 514 per hour, with time and a half for hours in excess of 40 per week. Santana's payroll deductions include withheld income tax of 40%, FICA tax, and a weekly deduction of $9 for a charitable contribution to United Way, Santana worked 56 hours during the work Click the icon to view payroll tax rate information.) Read the requirements Requirement 1. Compute Santana's gross pay and not pay for the week. Assume samnings to dote are $13,000. (Round all amounts to the nearest cent) Begin by computing Santana's gross pay for the week. Gross Pay

Answer 1

Ans:

A). Gross Pay and net pay=

Particulars	calculation	Amount($)	Amount($)
Straight time pay for 40 hours	=40*14	560
overtime pay for 16 hours	=16*14*1.5	336
Gross pay			896
Withholding deduction
Employee income tax	=40% of 896	627.20
Employee OSADI tax	=6.2% of 896	55.55
Employee medicare tax	=1.45% of 896	12.99
Employee contributed to united way		9
			704.74
Net home (take -pay)			191.26

2.Journal entry to record wages expense accrual

Account title and explanation	Debit($)	Credit($)
Wages expense	896
Employee income tax payable		627.20
Employee OSADI tax payable		55.55
Employee medicare tax payable		12.99
Employee contribution to united way payable		7
Wages payable(896-672.20-12.99-55.55-7)		193.26
( to record accrual of wages expense)

3. Journal entry for payment

Account title and explanation	Debit($)	credit($)
Wages payable	193.26
Cash		193.26
( to record wages paid)