Larry Whitney

is general manager of

Stonyside

Salons. During

2024,

Whitney

worked for the company all year at a

$12,200

monthly salary. He also earned a year-end bonus equal to

5%

of his annual salary.

Whitney's

federal income tax withheld during

2024

was

$3,904

per month, plus

$1,757

on his bonus check. State income tax withheld came to

$170

per month, plus

$120

on the bonus. FICA tax was withheld on the annual earnings.

Whitney

authorized the following payroll deductions: Charity Fund contribution of

4%

of total earnings and life insurance of

$5

per month.

Stonyside

incurred payroll tax expense on

Whitney

for FICA tax. The company also paid state unemployment tax and federal unemployment tax.

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.Requirement 1. Compute

Whitney's

gross pay, payroll deductions, and net pay for the full year

2024.

Round all amounts to the nearest dollar.Begin by computing

Whitney's

gross pay for the year. (Round all amounts to the nearest dollar.)

Gross pay:
Gross Pay

Now compute

Whitney's

payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.)

Net pay:
Withholding deductions:
Net (take-home) pay

Requirement 2. Compute

Stonyside's

total

2024

payroll tax expense for

Whitney.

(Round all amounts to the nearest dollar.)

Employer Payroll Taxes:
Total Employer Payroll Tax
Total Payroll Expense

Requirement 3. Make the journal entry to record

Stonyside's

expense for

Whitney's

total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. (Record debits first, then credits. Exclude explanations from journal entries.)

Date			Accounts	Debit	Credit

Requirement 4. Make the journal entry to record the accrual of

Stonyside's

payroll tax expense for

Whitney's

total earnings. (Record debits first, then credits. Exclude explanations from journal entries.)

Date			Accounts	Debit	Credit

Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from journal entries.)

Date			Accounts	Debit	Credit

Reqirements

1.	Compute Whitney's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar.
2.	Compute Stonyside's total 2024 payroll tax expense for Whitney.
3.	Make the journal entry to record Stonyside's expense for Whitney's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. 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 Stonyside's payroll tax expense for Whitney's total earnings.
5.	Make the journal entry for the payment of the payroll withholdings and taxes.