Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help! please!! Herman Stanton manages a Dairy Land drive-in. His straight-time pay is $16 per hour, with time-and-a-half for hours in excess of 40 per

help! please!!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Herman Stanton manages a Dairy Land drive-in. His straight-time pay is $16 per hour, with time-and-a-half for hours in excess of 40 per week. Stanton's payroll deductions include withheld income tax of 30%,FICA tax, and a weekly deduction of $10 for a charitable contribution to United Way. Stanton worked 51 hours during the week. (1) (Click the icon to view payroll tax rate information.) Read the requirements. Begin by computing Stanton's gross pay tor the week. Compute Stanton's net pay for the week. (Round all amounts to the nearest cent.) Requirement 2. Joumalize Frosty Boy's wages expense accrual for Sully's work. An explanation is not required. Recall that gross pay is an expense to the employer. Frosty Boy will increase (debit) Wages Expense for Sully's gross pay. The payroll withholdings will be recorded as liabilities until the amounts are paid. Lastly, the Wages Payable (a liability) account will be increased by the net pay. Remember that we record an increase in liabilities with a credit. Go ahead and record the entry. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.) Requirement 3. Joumalize the subsequent payment of wages to Sully. Now record the entry to record the payment of wages to Sully. When Frosty Boy pays Sully, the company will decrease, or debit, the Wages Payable liability account and decrease Cash (an asset). Record the transaction now. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from joumal entries.) For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000,2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Of EPAs Fiscal 2013 And 2012 Consolidated Financial Statements

Authors: U.S. Environmental Protection Agency

1st Edition

1500696218, 978-1500696214

More Books

Students also viewed these Accounting questions

Question

Is the hypothesis test left-tailed, right-tailed, or two-tailed?

Answered: 1 week ago