Xinia Poehler works for MRK all year and earns a monthly salary of $ 12,000. There is no overtime pay. MRK withholds income taxes at 15% of gross pay. In addition to payroll taxes, Xinia elects to contribute 5% monthly to United Way. MRK also deducts $ 150 monthly for co-payment of the health insurance premium. As of September 30, Xinia had $ 108,000 of cumulative earnings.

Requirements

1. Compute Xinia’s net pay for October.

2. Journalize the accrual of salaries expense and the payments related to the ­employment of Xinia Poehler.