Mel Morgan works as a cook for an Applebee's diner. His regular pay rate is $10 per hour, with time-and-a-half for hours in excess of 40 per week. Morgan's payroll deductions include withheld income tax of 7% of total earnings, FICA tax, and a weekly deduction of $5 for a charitable contribution to United Way. Morgan's employer is required to pay SUTA and FUTA tax. Use a 5.4% SUTA tax rate, and a .6% FUTA tax rate. The state unemployment wage base in the state where Morgan works is $34,000. Assume that Morgan has made $3,600 prior to this pay period.

Requirements

1. Assuming Morgan worked 50 hours during the week, compute his gross pay and net pay for the week. Round amounts to the nearest cent.

2. Make journal entries to record wages expense and payroll tax expense for the week. Explanations are not required. Round amounts to the nearest cent?