Exercise 10-5 Dan Noll\'s gross earnings for the week were $1,850, his federal i
ID: 2521436 • Letter: E
Question
Exercise 10-5
Dan Noll's gross earnings for the week were $1,850, his federal income tax withholding was $334, and his FICA total was $142.
a. What was Noll’s net pay for the week? (Round answer to 0 decimal places, e.g. 5,275.)
b. Journalize the entry for the recording of his pay in the general journal. (Note: Use Salaries and Wages Payable: not Cash.) (Round answers to 0 decimal places, e.g. 5,275. Assume FICA rate of 7.65%. Credit accounts titles are automatically indented when the amount is entered. Do not indent manually.)
list of usable accounts:
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Bonds Payable
Cash
Common Stock
Cost of Goods Sold
Depreciation Expense
Discount on Bonds Payable
Equipment
Federal Income Taxes Payable
Federal Uemployment Taxes Payable
FICA Taxes Payable
Gain on Bond Redemption
Income Tax Expense
Income Tax Payable
Insurance Expense
Interest Expense
Interest Payable
Inventory
Lease Liability
Loss on Bond Redemption
Mortgage Payable
Notes Payable
Notes Receivable
Other Operating Expenses
Paid-in Capital in Excess of Par-Common Stock
Payroll Tax Expense
Preferred Stock
Premium on Bonds Payable
Prepaid Insurance
Retained Earnings
Salaries and Wages Expense
Salaries and Wages Payable
Sales Revenue
Sales Taxes Payable
Service Revenue
State Income Taxes Payable
State Unemployment Taxes Payable
Subscription Revenue
Ticket Revenue
Unearned Service Revenue
Unearned Subscription Revenue
Unearned Ticket Revenue
c. Record the issuing of the check for Noll’s pay in the general journal. (Round answers to 0 decimal places, e.g. 5,275. Assume FICA rate of 7.65%. Credit accounts titles are automatically indented when the amount is entered. Do not indent manually.)
list of usable accounts:
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Bonds Payable
Cash
Common Stock
Cost of Goods Sold
Depreciation Expense
Discount on Bonds Payable
Equipment
Federal Income Taxes Payable
Federal Uemployment Taxes Payable
FICA Taxes Payable
Gain on Bond Redemption
Income Tax Expense
Income Tax Payable
Insurance Expense
Interest Expense
Interest Payable
Inventory
Lease Liability
Loss on Bond Redemption
Mortgage Payable
Notes Payable
Notes Receivable
Other Operating Expenses
Paid-in Capital in Excess of Par-Common Stock
Payroll Tax Expense
Preferred Stock
Premium on Bonds Payable
Prepaid Insurance
Retained Earnings
Salaries and Wages Expense
Salaries and Wages Payable
Sales Revenue
Sales Taxes Payable
Service Revenue
State Income Taxes Payable
State Unemployment Taxes Payable
Subscription Revenue
Ticket Revenue
Unearned Service Revenue
Unearned Subscription Revenue
Unearned Ticket Revenue
Explanation / Answer
a. Net pay = Gross pay - FICA taxes - Federal income tax
Net pay = $1,850 - $142 - $334
Net pay = $1,374
b.
c.
Account titles and explanation Debit Credit Salaries and Wages Expense $1,850 Federal Income Taxes Payable $334 FICA Taxes Payable $142 Salaries and Wages Payable $1,374Related Questions
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