Question

Current Attempt in Progress Veronica Strand's regular hourly wage rate is $18, and she receives an hourly rate of $20 for work in excess of 40 hours. During a January pay period, Veronica works 47 hours. Veronica's federal income tax withholding is $87, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65 %. Prepare a tabular summary to record the employer's payroll taxes for the period. Ignore unemployment taxes. (Round answers to 2 decimal places, eg. 15.25. Ifa transaction causes a decrease in Assets, Liablities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liobility or Equity item that was reduced.) Assets Liabilities Cash Salarles & Wages Pay. Fed. Inc. Taxes Pay FICA Taxes Pay. + Common Stock + + Jan. 15 $ $ $ $

Answer 1

Gross earnings	860	=(40*18)+(7*20)
FICA taxes payable	65.79	=860*7.65%
	Assets	Liabilities			Stockholders' Equity
						Retained Earnings
	Cash	Salaries & Wages Pay.	Fed. Inc. Taxes Pay.	FICA Taxes Pay.	Common Stock	Revenue	Expense	Dividend
Jan 15				65.79			-65.79		Payroll tax expense