Example 6-1

Chris Collins (the first employee in Figure 6.1) earns $15.20 per hour and worked 44 hours. His pay would be (using the overtime premium approach):

Regular pay	$15.20 44 hours =	$668.80
Overtime premium pay	$ 7.60 4 hours =	30.40
Total pay		$699.20

Kelsey Gunn is the only employee of Arsenault Company. His pay rate is $23.00 per hour with an overtime rate of 1 times for hours over 40 in a workweek.

For the week ending March 31, 20--, he worked 50 hours. Calculate his gross pay for the week using the overtime premium approach to calculate the overtime pay.

d. Since the company holds back one week of pay, Gunn will not be paid until April 7, 20--. What adjusting entry would the company make in order to record Gunn's salary in the first quarter of this year? If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Account Debit Credit Salary Expense 0 Salaries Payable 0