Donald Chin works for Northwest Supplies. His rate of pay is $8.50 per hour, and he is paid 1 times the regular rate for all hours worked in excess of 40 per week. During the last week of January of the current year, he worked 48 hours. Chin is married and claims three withholding allowances on his W-4 form. His weekly wages are subject to the following deductions:

1. Employee federal income tax (Tax Tables: Refer to Figure 8-4 in the text.)
2. Social Security tax at 6.2%
3. Medicare tax at 1.45%
4. Health insurance premium, $85.00
5. Credit union, $125.00
6. United Way contribution, $10.00

Required:

1. Compute Chin's regular pay, overtime pay, gross pay, and net pay. If required, round your answers to the nearest cent.

2. Journalize the payment of his wages for the week ended January 31, crediting Cash for the net amount. When required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.