Question

Exam # 1 (2) - Word (Product Activation Failed) Mailings Review View Tell me what you want to do. T. Tyler Jacob is paid $15 per hour for a 40-hour work week with time-and-a-half for overtime, which is not charged to specific jobs. For the week of March 4. 10, Tyler's labor time record was as follows: Mon Tues Wed Thur Fri Sat Total Job B280 8 5 6 10 10 2 41 Machine maintenance 2 1 7 Total 8 9 8 10 10 3 48 Other Information: Tyler's year-to-date wages as of March 3 were $7,500. He contributes $20 weekly for his health insurance premiums. Current tax rates in effect are: FIT withholding rate - 10%: FICA-8% on the first $100,000 of wages; SUTA-4% on the first $8,000 of wages; and FUTA- 1% on the first $8,000 of wages. (a) (b) Calculate Tyler's gross and net pay. Prepare the journal entries necessary to (1) Record Tyler's payroll (2) Pay Tyler's payroll (3) Distribute Tyler's payroll to the appropriate accounts Calculate the employer's payroll taxes and prepare the journal entry to record them employer's portion of payroll taxes

Answer 1

Ans.(a). Tyler's Gross Pay - (40 Hours x $15) + (8 Hours x $15 x 1.5) = $780

Tyler's Net Pay - $780 - $20 = $760

Ans.(b).(1).

Salaries A/c ...Dr $780

To Salaries Payable A/c $780

Ans.(b).(2).

Salaries Payable A/c Dr. $780

To Cash/ Bank A/c $682

To FIT A/c $78

To Health Insurance Premium A/c $20

Ans.(b).(3). Salaries- Indirect Expenses

Salaries Payable- Current Liabilities

Cash- Asset

FIT- Current Liabilities

Ans.(c). Employer's Payroll Tax - $78