Larry Whitney is a general mananger of Moonwalk Salons. During 2016, Whitney worked for the company all year at a 13,400 monthly salary. He also earned a year -end bonus equal to 15% of his annual salary. Whitney's federal income tax withheld during 2016 was 1,072 per month,plus2,412 on his bonus on the annual earnings. Whitney authorized the following payroll deductions: Charity fund contribution of 3% of total earnings and life insurance of $15 per month.

Requirement 1. Compute Whitney's gross pay, payrolldeductions,and net pay for the full year 2016. Round all amounts to the nearest dollar.

Begin by computing Whitney's gross pay for the year. (Round all amounts to the nearest dollar.)

For payroll calculations, use the following tax rates and round amounts to the nearest cent:

Employee : OASDI: 6.2% on first $117,000 earned; medicare:1.45% up to $200,00, 2.35% on earnings above $200,000

Employer: OASDI: 6.2% on cirst 117,000 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first 7,000 earned ; SUTA:5.4% on first $7,000 earned.

Requirements:

1. Compute Whitney's gross pay , payroll deductions, and net pay for the full year 2016. Round all amounts to the nearest dollar.

2.Compute Moonwalk's total 2016 payroll expense for Whitney.

3.Make the journal entry to record Moonwalk's expense for Whitney's total earnings for the year, his payroll deductions,and net pay.Debit Salaries Expense and Bonus Expense as appropiate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required.

4. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for Whitney's total earnings.