Question
Len Wilson is general manager of Stoneybrook Salons. During 2024, worked for the company all year at a $12,200 monthly salary. He also earned a
Len Wilson is general manager of Stoneybrook Salons. During 2024, worked for the company all year at a $12,200 monthly salary. He also earned a year-end bonus equal to 10% of his annual salary. 's federal income tax withheld during 2022 was $1,220 per month, plus $1,464 on his bonus check. State income tax withheld came to $60 per month, plus $30 on the bonus. FICA tax was withheld on the annual earnings. Wilson authorized the following payroll deductions: Charity Fund contribution of 1% of total earnings and life insurance of $35 per month.
Requirement 1. Compute Wilson's gross pay, payroll deductions, and net pay for the full year 2024.
Round all amounts to the nearest dollar. Now compute Wilson's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.)
Requirement 2. Compute Stoneybrook's total 2024 payroll tax expense for Wilson (Round all amounts to the nearest dollar.)
Requirement 3. Make the journal entry to record Stoneybrook's expense for Wilson'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.)
Requirement 4. Make the journal entry to record the accrual of Stoneybrook's payroll tax expense for Wilson's total earnings. (Record debits first, then credits. Exclude explanations from journal entries.)
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.)
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