Susan Braun\'s regular hourly wage rate is $16, and she receives an hourly rate

Question

Susan Braun's regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Susan works 47 hours. Susan's federal Income tax withholding is $95, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes. (Round answers to 2 decimal places, e.g. 15.15. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

SOLUTION :

PARTICULARS DEBIT CREDIT WAGE EXPENSE (40 X 16) + (7X 24)                                           808.00     FICA TAX PAYABLE (808 X 7.65%          61.81     WAGES PAYABLE (808- 61.81)       746.19

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