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Beth Corbin's regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Beth works 50 hours. Beth's federal income tax withholding is $98, she has no voluntary deductions, and the FICA tax rate is 7.65%. Use January 15 for the end of the pay period and the payment date.

Prepare the journal entries to record:

a. Beth's pay for the period.
b. The payment of Beth's wages.

Respuesta :

Parrain

Answer:

a.

Jan 15

DR Salaries and Wages   $770  

CR Federal Income tax payable     $98      

CR FICA taxes payable     $58.91  

CR Salaries and wages payable     $613.09

Working.

Beth's gross pay = (14 * 40 hours) + (21 * 10 extra hours above the 40)

= 560 + 210

= $770

FICA Taxes = 770 * 7.65%

= $58.91

b.

Jan 15

DR Salaries and Wages payable    $613.09  

CR Cash   $613.09

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