Brief Exercise 10-7

Betsy Strands regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Betsy works 47 hours. Betsys federal income tax withholding is $89, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare the employers journal entry to record payroll taxes for the period. Ignore unemployment taxes.

Date

	Account Titles and Explanation	Debit	Credit
Jan. 15