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all requirements needed F:11-26A Computing and journalizing payroll amounts Lenny Worthington is general manager of Countrywide Salons. During 2024, Worthington worked for the company all
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F:11-26A Computing and journalizing payroll amounts Lenny Worthington is general manager of Countrywide Salons. During 2024, Worthington worked for the company all year at a $13,400 monthly salary. He also earned a year-end bonus equal to 10% of his annual salary. Worthington's federal income tax withheld during 2024 was $938 per month, plus $3,216 on his bonus check. State income tax withheld came to $70 per month, plus $50 on the bonus. FICA tax was withheld on the annual earnings. Worthington authorized the following payroll deductions: Charity Fund contribution of 2% of total earnings and life insurance of $20 per month. Countrywide incurred payroll tax expense on Worthington for FICA tax. The company also paid state unemployment tax and federal unemployment tax. Requirements 1. Compute Worthington's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Countrywide's total 2024 payroll tax expense for Worthington. 3. Make the journal entry to record Countrywide's expense for Worthington's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Countrywide's payroll tax expense for Worthington's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes Step by Step Solution
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