Question

Instructions Gross Pay, Deductions, and Net Pay Donald Chin works for Northwest Supplies. His rate of pay is $8.50 per hour, and he is paid 19 times the regular rate for all hours worked in excess of 40 per week. During the last week of January of the current year, he worked 48 hours. Chin is married and claims three withholding allowances on his W-4 form. His weekly wages are subject to the following deductions: a. Employee federal income tax (Tax Tables: Refer to Figure 8-4 in the text.) b. Social Security tax at 6.2% c. Medicare tax at 1.45% d. Health insurance premium, $85.00 e. Credit union, $125.00 f. United Way contribution, $10.00 Required: 1. Compute Chin's regular pay, overtime pay, gross pay, and net pay. If required, round your answers to the nearest cent. 2. Journalize the payment of his wages for the week ended January 31, crediting Cash for the net amount. When required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.

Answer 1

Amount $ Amount $ $ 340.00 $ 102.00 $ 442.00 Particulars Regular pay [ 40 x $8.50] Overtime pay ( 8 x $12.75] Gross pay Less: Deductions Employee federal income tax Social security ($442 x 0.062] Medicare tax ($442 x 0.0145 ] Health insurance premium Credit union United way contribution Total deductions Net pay ( 442-261.81] $ 8.00 $ 27.40 $ 6.41 $ 85.00 $ 125.00 $ 10.00 $ 261.81 $ 180.19 Credit date Accounts title Debit 31-Jan-20 Wages and salaries payable $ 442.00 Employees federal income tax payable Social security tax payable Medicare tax payable Health insurance premium payable Credit union payable United way contribution payable Cash $ 8.00 $ 27.40 $ 6.41 $ 85.00 $ 125.00 $ 10.00 $ 180.19