Susan Braun’s regular hourly wage rate is $30, and she receives an hourly rate o
ID: 2471866 • Letter: S
Question
Susan Braun’s regular hourly wage rate is $30, and she receives an hourly rate of $45 for work in excess of 40 hours. During a January pay period, Susan works 46 hours. Susan’s federal income tax withholding is $91, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%.
Prepare the employer’s journal entries to record (a) Susan’s pay for the period and (b) the payment of Susan’s wages. Use January 15 for the end of the pay period and the payment date. (Round answers to 2 decimal places, e.g. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
No.
Date
Account Titles and Explanation
Debit
Credit
(a) Jan. 15 (b) Jan. 15Explanation / Answer
Calculation of Sussan Wages Regular Wages - $30 X 40 Hrs 1,200.00 Overtime Wages - $45 X 6 Hrs 270.00 Total Wages 1,470.00 FICA - $1470 X 7.65% 112.46 Journal Entry No. Date Particulars Dr. Amt Cr. Amt (a) Jan-15 Salaries & Wages Dr. 1,470.00 To Federal I Tax Payable 91.00 To FICA Tax Payable 112.46 To Salaries & Wages Payable 1,266.54 (Record the wages due to Sussan Braun) (b) Jan-15 Salaries & Wages Payable Dr. 1,266.54 To Cash 1,266.54 (Record the wages paid to Sussan Braun)
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