Lenny Worthington is general manager of Valuepoint Salons. During 2016, Worthington worked for the company all year at a $10,600 monthly salary. He also earned a year-end bonus equal to 15% of his annual salary Worthington's federal income tax withheld during 2016 was $848 per month, plus $3,816 on his bonus check. State income tax withheld came to $110 per month, plus $30 on the bonus. FICA tax was withheld on the annual earnings. Worthington authorized the following payroll deductions: Charity Fund contribution of 3% of total earnings and life insurance of $40 per month i More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $117,000 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $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 Print ( Done Print Done i Requirements - X 1. Compute Worthington's gross pay, payroll deductions, and net pay for the full year 2016. Round all amounts to the nearest dollar. 2. Compute Valuepoint's total 2016 payroll expense for Worthington. 3. Make the journal entry to record Valuepoint's expense for Worthington'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 Valuepoint's payroll tax expense for Worthington's total earnings. Print Done Requirement 1. Compute Worthington's gross pay, payroll deductions, and net pay for the full year 2016. Round all amounts to the nearest dollar. Begin by computing Worthington's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Gross Pay Requirement 1. Compute Worthington's gross pay, payroll deductions, and net pay for the full year 2016. Round all amounts to the nearest dollar. Begin by computing Worthington's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Bonus Employee income tax Medicare tax - OASDI tax Salary ctions and net pay for the year. (Round all amounts to the nearest dollar er in the input fields and then continue to the next question Now compute Worthington's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.) Net pay Withholding deductions: Net (take-home) pay Now compute Worthington's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.) Net pay Charity fund contribution Employee Medicare tax Employee OASDI tax Federal income tax FUTA Gross pay Health insurance benefits Life insurance Retirement benefits State income tax SUTA C Total withholdings the input fields and then continue to the next question Requirement 2. Compute Valuepoint's total 2016 payroll expense for Worthington (Round all amounts to the nearest dollar.) Employer Payroll Taxes: Total Employer Payroll Tax Total Payroll Expense Requirement 2. Compute Valuepoint's total 2016 Charity fund contribution Federal income tax FICA-Medicare FICA-OASDI FUTA Gross pay Health insurance Life insurance Net pay Retirement State income tax SUTA ord for n Exple Requirement 3. Make the journal entry to record Valuepoint's expense for Worthington'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 3. Make the journal entry to record Valuepoint's expense for Worthington's total earnings for 1 accounts for the payroll deductions and Cash for net pay. An explanation is not required. (Record debits firs Date Accounts and Explanation Debit Credit 2016 Bonus Expense Cash Charity Fund Payable Employee Federal Income Taxes Payable Employee State Income Taxes Payable Federal Unemployment Taxes Payable FICA-Medicare Taxes Payable FICA-OASDI Taxes Payable Life Insurance Payable Requirem Payroll Tax Expense Salaries Expense Choose frc State Unemployment Taxes Payable payroll tax expense for Worthin Itinue to the next question Requirement 4. Make the journal entry to record the accrual of Valuepoint's payroll tax expense for Worthington's total earnings. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts and Explanation Debit Credit 2016 A tax. The company also paid tax and federal unemployment view payroll tax rate Valuepoint for the coi He also e Bonus Expense his annua Cash withheld c $3,816 or Charity Fund Payable withheld Employee Federal Income Taxes Payable bonus. FI Employee State Income Taxes Payable earnings. payroll de Federal Unemployment Taxes Payable of total ea FICA-Medicare Taxes Payable FICA-OASDI Taxes Payable Life Insurance Payable Requirer Payroll Tax Expense Worthingt Salaries Expense Date State Unemployment Taxes Payable 2016 payroll tax expense for inations from journal entries.) Debit Credit | 1 | |