Susan Braun’s regular hourly wage rate is $22, and she receives an hourly rate o

Question

Susan Braun’s regular hourly wage rate is $22, and she receives an hourly rate of $33 for work in excess of 40 hours. During a January pay period, Susan works 45 hours. Susan’s federal income tax withholding is $89, 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.)

Explanation / Answer

Debit Credit a Wages Payable 1045 *To FICA Tax payable       79.94 To Withholding tax 89 To Net Payroll Payable     876.06 b Net Payroll Payable 876.06 To Cash A/c 876.06 FICA tax Payable    159.89 Withholding Tax 89 To Cash     248.89 *1045*7.65%

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