Khonkar Enterprises has two hourly employees, Matt and Sam. Both employees earn overtime at the rate of \(11 / 2\) times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first \(\$ 110,000\) of wages and the Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Matt and Sam was \$290 and \$240 respectively for the first week of January. The following information is for the first week in January 2010:

Required

a. Calculate the gross pay for each employee for the week.

b. Calculate the net pay for each employee for the week.

c. Prepare the general journal entry to record payment of the wages.

Transcribed Image Text:

Employee Hours Worked Wage Rate per Hour Matt 56 $26 Sam 48 $22