Gross Pay, Deductions, and Net Pay Donald Chin works for Northwest Supplies. His rate of pay is $8.50 per hour, and he is paid 11/2 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: a. Employee federal income tax (Tax Tables: Refer to Figure 8-4 in the text.) b. Social Security tax at 6.2% c. Medicare tax at 1.45% d. Health insurance premium, $85.00 e. Credit union, $125.00 f. 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. Gross Pay, Deductions, and Net Pay Donald Chin works for Northwest Supplies. His rate of pay is $8.50 per hour, and he is paid 112 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: a. Employee federal income tax (Tax Tables: Refer to Figure 8-4 in the text.) b. Social Security tax at 6.2% c. Medicare tax at 1.45% d. Health insurance premium, $85.00 e. Credit union, $125.00 f. 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. Gross Pay, Deductions and Net Pay 1. Compute Chin's regular pay, overtime pay, gross pay, and net pay. If required, round your answers to the nearest cent. Regular pay 340 Overtime pay $ 102 Gross pay $ 442 Net pay 188.19 General Journal 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. Page: 1 DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 1 20-- Jan. 31 Wages and salaries expense 442 1 2 Employee federal income tax payable 27.40 2 3 Social Security tax payable 3 4 Medicare tax payable 4 5 Health insurance premiums payable 5 6 Credit union payable 6 7 United Way contributions payable 7 8 Cash 8 9 Payroll for week ended January 31 9
