Question

"uestion 6 200 Selected data from a March payroll register for Sure Company are presented below. Some amounts are intention Gross earnings: Regular $24,000 State income taxes $(3) Overtime (1) Union dues Total Total deductions Deductions: Net pay $23,540 FICA taxes $2,340 Accounts debited: Federal income taxes 2,000 Salaries/wages expense FICA taxes are 8%. State income taxes are 4% of gross earnings. nstructions B) Fill in the missing amounts. Journalize the February payroll and the payment of the payroll. or the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). ITT Arial : 3 (12pt) T. E .

Answer 1

A)

Gross Earning	24000 $
Overtime Payment (Note 1)	5250$
Gross Total Pay	29250$
State Tax @ 4% of Gross payment	(1170) $
Union Dues	(200) $
FICA Taxes	(2340) $
Federal Income Taxes	(2000) $
Net Pay	23540 $

Note 1- As Federal Income taxes are 8%, so gross pay is- 2340/8%= 29250 $.

                So overtime payment= 29250-24000= 5250 $

B)

Salaries A/c Dr. 29250 $

To, State Tax payable a/c 1170 $

To, Union Dues Payable a/c 200 $

To, FICA Taxes Payable a/c 2340 $

To, Federal Income Tax Payable a/c 2000 $

To, Cash a/c 23540 $