Earth-to-Earth, a clothing resale store, employs one salesperson, Deana Hopeton. Hopeton's straight-time wage is $40 per hour, with time-and-a-half pay for hours above 40. Earth-to-Earth withholds income tax (10%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hopeton's pay. Earth-to-Earth also pays payroll taxes for FICA-OASDI (6.2%), FICAMedicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 62 hours. Prior to this week, she had earned $1,600. Read the requirements Requirement 1. Compute Hopeton's gross pay and net (take-home) pay for the week. Begin with the computation of gross pay. (Round all amounts to the nearest whole dollar.) Gross Pay: Gross Pay Now calculate net (take-home) pay. (Round all amounts to the nearest whole dollar) Withholding deductions: Net (take-home) pay Requirement 2. Record the payroll entries that Earth-to-Earth would make for each of the following: (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Accrual of salaries and wages expense and subsequent payment related to Hopeton Begin by recording the expense. Assume the payment was made after the expense was recorded. We will record the payment of salaries and wages as a separate journal entry in the following step. (Round all amounts to the nearest whole dollar.) Date Accounts and Explanation Debit Credit Earth-to-Earth, a clothing resale store, employs one salesperson, Deana Hopeton. Hopeton's straight-time wage is $40 per hour, with time-and-a-half pay for hours above 40. Earth-to-Earth withholds income tax (10%), FICA-OASDI (6.2%), and FICAMedicare (1.45%) from Hopeton's pay. Earth-to-Earth also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 62 hours. Prior to this week, she had earned $1,600. Read the requirements Requirement 2. Record the payroll entries that Earth-to-Earth would make for each of the following: (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Accrual of salaries and wages expense and subsequent payment related to Hopeton Begin by recording the expense. Assume the payment was made after the expense was recorded. We will record the payment of salaries and wages as a separate journal entry in the following step. (Round all amounts to the nearest whole dollar.) Date Accounts and Explanation Debit Credit Now record the payment of salaries and wages to Hopeton. (Round all amounts to the nearest whole dollar.) Date Accounts and Explanation Debit Credit b. Record the entry that Earth-to-Earth would make for the employer payroll taxes accrual related to Hopeton (Round all amounts to the near dollar) Date Accounts and Explanation Debit Credit Earth-to-Earth, a clothing resale store, employs one salesperson, Deana Hopeton. Hopeton's straight-time wage is $40 per hour, with time-and-a-half pay for hours above 40. Earth-to-Earth withholds income tax (10%), FICAMOASDI (6.2%), and FICA-Medicare (1.45%) from Hopeton's pay. Earth-to-Earth also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 62 hours. Prior to this week, she had earned $1,600 Read the requirements. b. Record the entry that Earth-to-Earth would make for the employer payroll taxes accrual related to Hopeton (Round all amounts to the nearest whole dollar.) Date Accounts and Explanation Debit Credit c. Record the entry that Earth-to-Earth would make for payment of all payroll taxes (employee and employer related) (Prepare a single compound journal entry. Round all amounts to the nearest whole dollar.) Date Accounts and Explanation Debit Credit Requirement 3. How much was Earth-to-Earth's total payroll expense for the week? The company's total payroll expense for the week was $ . Choose from any list or enter any number in the input fields and then continue to the next question. (Round all amounts to the nearest dollar.) 1. Compute Hopeton's gross pay and net (take-home) pay for the week. 2. Record the payroll entries that Earth-to-Earth would make for each of the following a. Accrual of salaries and wages expense and subsequent payment related to Hopeton b. Employer payroll taxes accrual related to Hopeton c. Payment of all payroll taxes (employee and employer related) 3. How much was Earth-to-Earth's total payroll expense for the week
